Case Study : Starbucks ' Biggest Strength

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After reviewing the case provided to us and conducting some research on your company, we have learned the following: Starbucks is an incredibly popular company that has successfully captured a large portion of the market. Starbucks has many strengths that have helped it become as successful as it is (Exhibit A). Starbucks’ biggest strength, according to our research, is its brand value (Exhibit A). According to our outside research, Starbucks currently has 39.3% of the market share in the coffee and snack shop industry here in the U.S. (1). Starbucks’ 39.3% of the market share in the coffee and snack shop industry is nearly double that of its closest competitor, Dunkin’ Brands Inc., the parent company of Dunkin’ Donuts and Baskin Robbins, which holds 21.7% market share (1). We see this as a major advantage of Starbucks and a big reason why the company has been so successful. Other strengths of the company, as seen in Exhibit A, also includes a large international presence, (23,043 stores in nearly 70 countries), and the baristas themselves, who are capable of customizing any drink ordered by a customer (Exhibit A) (2). The other side of the SWOT analysis in Exhibit A shows that Starbucks has some weaknesses. The weaknesses we identified were that Starbucks’ price point on its products was higher than that of its competitors, which has allowed its competitors to keep up with Starbucks. Also, the at-times confusing terminology when ordering drinks, has created some confusion.
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