A strategic Alliance is an agreement for cooperation

among two or more independent firms to work

together toward common objectives.

Unlike in a joint venture, firms in a strategic alliance

do not form a new entity to further their aims but
collaborate while remaining apart and distinct.

Inter-sectorial strategic alliance is the type of strategic

alliance which is the collaboration between two or
more firms neither in the same industry nor related
through the vertical chain.

The is a type of strategic alliance based on the

Industry origin.

Starbucks
Starbucks

Corporation is an American global coffee

company and coffeehouse chain based in Seattle,
Washington.
Starbucks

is the largest coffeehouse company in the

world, with 20,891 stores in 64 countries, including 13,279
in the United States, 1,324 in Canada, 989 in Japan, 851 in
China, and 806 in the United Kingdom.
Through

the Starbucks Entertainment division and Hear

Music brand, the company also markets books, music, and
film. Many of the company's products are seasonal or
specific to the locality of the store. Starbucks-brand ice
cream and coffee are also offered at grocery stores.

From Starbucks' founding in 1971 as a Seattle coffee bean

roaster and retailer, the company has expanded rapidly.
Since 1987, Starbucks has opened on average two new
stores every day

Starbucks had been profitable as a local company in Seattle

in the early 1980s but lost money on its late 1980s
expansion into the Midwest and British Columbia. Its
fortunes did not reverse until the fiscal year of 1989-1990,
when it registered a small profit of $812,000

By the time it expanded into California in 1991 it had

become trendy. The first store outside the United States or
Canada opened in Tokyo in 1996, and overseas stores now
constitute almost one third of Starbucks' stores.

Kraft Foods Group

An

American grocery manufacturing and processing

conglomerate headquartered in the Chicago suburb of
Northfield, Illinois.
The

company was formed in 2012 by a demerger from

Kraft Foods Inc., which in turn was renamed Mondelz
International.
The

new Kraft Foods Group is a North American grocery

business, while Mondelz is a multinational snack and
confectionary company.
Kraft Foods Group is an independent public company

Starbucks has relied on a strategic alliance with Kraft

foods since 1998 to get its packaged coffee products
onto grocery store shelves

Starbucks turnover continued to grow from 50 million

to 500 million after their cooperation.

Starbucks needs Krafts distribution infrastructure and

expertise.

Kraft benefited from the retail packaged coffee

products.

Starbucks thinks Kraft has been failing to properly market

packaged-coffee products.

Starbucks accused Kraft of bungling sales of its packaged

coffee in grocery stores.

Starbucks accused Kraft:

Of shutting its executives out of sales meetings.
Using knowledge gained from their relationship to launch
its
own coffee brand and damaging Starbucks's
image.

Starbucks intended to go it alone and terminate their

agreement with Kraft as soon as possible.

Starbucks wanted greater flexibility to sell the singleserve coffee pods that were taking off in the market at
the time.

Starbucks believe Kraft did not deliver on its

responsibilities to our brand under the agreement
To mark a new era for the company. The company has
said those sales are ahead of expectations

Had difficulties in retailing its packed coffee.

Dis not have its own distribution infrastructure for

reaching the retail grocery store.

Had to pay $2.7billion for disputing the deal with

Kraft

Starbucks now markets its packaged products through

privately-owned marketing firm Acosta.

Set up an internal strategic marketing team. This will

allow Starbucks to have a proactive feedback of
customer satisfaction and hence faster improvement.

Invest more on the other distribution channel