StarbucksIntroduction"Rewarding everyday moments". Starbucks' mantra clearly implies that they don't just sell coffee. They claim to sell the coffee experience. Their cafes selling specialty coffees also offer customers an environment where they can be themselves. Starbucks advertises itself as the third place between home and office, where you can escape, reflect, read, chat or listen. They have become the largest player in the coffee industry and are still looking for avenues to expand. Problem Statement The two questions that arose in Mr. Schultz's mind capture the problem faced by Starbucks. “Was Starbucks growing as best it could?” “Was Starbucks trying too hard in its quest for growth?” Options Facing StarbucksHoward Schultz's dilemma right now is: What happens next? Where does Starbucks go from here? options available before them are as follows1. New Specialty Sales Partners: The option currently facing Starbucks is to partner with McDonald's who approached them for this joint venture.2. Expansion of domestic retail markets and international: with the goal of 2,000 stores by 2000, Starbucks is expanding. They are expanding into international markets and at the same time they are also diversifying into national markets. Initiatives such as Frappuccino and the Doppio Cart fit into this context.3 New products: At the moment, Starbucks does not target younger generations well because young people are not big coffee drinkers. To this end, they could launch a range of new products such as the youth-favorite flavored coffee. Analysis of optionsWhile we think in terms of collaboration with new specialized partners, we must be careful that the brand is not diluted. Taking the case of McDonald's specifically, there are many factors to consider. Looking at the pros of the proposition, we can see that through this collaboration it is possible to potentially increase the customer base and brand awareness could increase among people who go to McDonalds. It could help us target the youth segment that has proven elusive in other campaigns. But looking at the other side of the coin, there is a possibility of brand dilution when partnering with McDonald's because Starbucks coffee could become a secondary product. The association between coffee and hamburgers is not as popular as that between hamburgers and coke. So there the Starbucks brand will not get the desired visibility. Another point is that the type of consumers who come to McDonalds are different from those who come to Starbucks coffee shops.