Situational Analysis Of Starbucks

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Starbucks set out to inspire a better world by sharing a high-quality coffee with their friends (Starbucks, 2018). An in 1971, Starbucks opened their first coffee shop in Settle, Washington (Starbucks, 2018). Now, CEO Howard Schultz first visited the Starbucks coffee shop back in 1981 (Starbucks, 2018). In 1987, Schultz with some local investors purchased Starbucks and created the coffee shop known today (Starbucks, 2018). The following study is a situational analysis assessment of the external environment of Starbucks (Ferrell & Hartline, 2014). The external factors include competition, economic growth, political trends, technology advancements, and sociocultural trends (Ferrell & Hartline, 2014). Meeting the consumer's needs and wants is the goal for every company selling a product and with Starbucks, the goal is no different (Ferrell & Hartline, 2014). However, most…show more content…
Starbucks has joined forces with Spotify to have digital music available to consumers in all store locations (Ferrell & Hartline, 2014). As the social and cultural influences of the consumers change so must Starbucks (Ferrell & Hartline, 2014). Social and cultural influences have a profound effect on how consumers live and determine what, how, when, and where consumers buy products (Ferrell & Hartline, 2014).
In summary, there are some opportunities for Starbucks to grow their business. First, Starbucks could globally expand outside the United States to places like China, Brazil, and India. Second, Starbucks has the opportunity to co-brand with a food service or retailer. Third, increase Starbucks brands outside of Starbuck stores. There are also some threats that could affect the Starbucks brand. First, increase in prices for coffee beans and dairy products. Second, increase in minimum wage can decrease profits. Finally, a larger number of coffee competitors can lead to a decrease in
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