Diversification of Starbucks

Starbucks offers a range of exceptional products that customers can enjoy in stores, at home, or on the go. These products include coffee, handcrafted beverages, merchandise, fresh food, coffee and tea consumer products, such as whole bean and ground coffee, and Ready-to-Drink (RTD), such as Starbucks bottled Frappuccinocoffee drinks (Starbucks, 2013). Starbucks' brand portfolio includes Starbucks Coffee, Seattle's Best Coffee, Teavana, Tazo, Evolution Fresh, La Boulange and Torrefazione Italia Coffee (Starbucks, 2013). "The Evolution brand was acquired by Starbucks in November 2011 for $30 million. Since then, the company has opened some Evolution Fresh juice bars while also offering Evolution juices at its coffee stores" (Trefis Team, 2013). Starbucks also purchased Teavana, which is based in Atlanta, for $620 million in year 2012. "It plans to eventually operate Teavana stores in the same way that it runs its namesake coffee stores (Trefis Team, 2013). With the acquisition of additional brands, such as La Boulange and a San Francisco based bakery chain, Starbucks aims to expand the food menu at its coffee stores (Trefis Team, 2013). The strategy Starbucks utilizes is related diversification for the expansion into product lines that are related to the firm's core product, coffee. The main linkage of Starbucks' products is its coffee beans, which is the main ingredient for many of its drinks, and the way of consumption where all Starbucks' coffee, tea and other flavored drinks are primarily consumed by using a cup. Furthermore, its food and snacks are all packaged for easy access on the go. Exceptional quality is the linkage between its drinks and other lines of products as the company focuses on the quality to conquer consumers' taste buds. By offering more varieties of products, Starbucks creates value for both itself and its customers. More revenue is generated for the company and by acquiring additional varieties of drinks, snacks, and food to better serve and retain its clients, Starbucks will be able to keep the expansion momentum going.

Starbucks should be the first place that comes to mind if one just wants to grab a quick bite or have a drink and snack while enjoying oneself in a relaxing environment. Other than introducing tea and new drinks, "In late June, Starbucks announced its partnership with Groupe Danone, pairing its already popular Evolution Fresh juices with Dannon Oikos Greek yogurt for the launch of a line of yogurt smoothies (Jones, 2020). The company has also been testing beer and wine at various locations due to a new campaign rollout of "Starbucks Evenings" (Jones, 2020). Not only is Starbucks adding new food and drinks variation to draw and satisfy a broader customer base but also seeking additional expansion into the international market. For example, one of the company's short-term goals is that "Starbucks plans to double its store count to 6,000 China units across 230 cities by the end of 2022, which means that Starbucks plans to open a China restaurant every 15 hours for the next five years" (Klein, 2018). These strategic moves will ensure further success of the company in becoming even more popular and influential in the US as well as other international markets.

What would a McKinsey Matrix in a 9 quandrant graph look like based on this writing? Draw.