A Swot Analysis of Starbucks

3360 WordsNov 4, 200914 Pages
Introduction Starbucks is a famous coffeehouse. Until the mid-1980s it was only a provider of coffee to fine restaurants. Thereafter Howard Schultz, director of retail operations and marketing, was impressed of the popularity of coffee in Milan while he was in Europe . His idea was born. He wanted to bring the coffee bar culture to the Americans. So Starbucks started to realise his idea and so created a new trend. The clue is not only to sell coffee, but to sell an experience. Today Starbucks has got about 20 million customers each week in about 5500 coffeehouses all over the world . While haunting to increase sales more and more, Starbucks has got a special growth strategy. They open a lot of stores in a very short period of time,…show more content…
They create a nice and friendly environment that they also reflect outwards. Starbucks offers different flavours through its position as a disciplined innovator and introduces diverse products. They also pay attention to the high standards and want to offer the best quality. Starbucks decided to push into supermarkets because the majority of people bought their coffee in stores before. Therefore Starbucks came to the conclusion to make a deal with the Kraft company. This deal combines Starbucks experience in producing premium coffee with Kraft’s knowledge of marketing, selling and distributing. That was a good step for Starbucks to reach a new channel and to get the entry to 25,000 supermarkets. It makes sense that the company wants to reach the people at home and to include more people into the Starbucks lifestyle. Beyond stores, Starbucks sells its beans to hotels, several airlines and airports. Starbucks sells gourmet coffee, beans as well as gifts and related goods. (Starbucks also signed a deal to operate coffee shops within Waterstones bookshop superstores.) Also the homepage of Starbucks has become successful and a ‘lifestyle portal’, where the company sells a variety of products like tea, coffee making equipment, compact discs and collectibles to satisfy their customers needs with different products. Weaknesses One of Starbucks` weakness is that their primary product is just coffee. They are therefore dependent on this main product line.

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