Starbucks Corporation Situation Analysis and Swot Essay

2668 WordsNov 6, 201111 Pages
Starbucks and its Environment Customers/Consumers Starbucks extends their coffee experience to everyone: kids, teenagers and adults. Part of their success comes from their ability to create new products that fit the culture of the country. In Japan, for instance, Starbucks launched green tea lattes, which later became popular in other countries (Allison). Starbucks is well established in countries like Canada, Japan, and the United Kingdom. In the US alone, Starbucks sells 4 million cups of coffee per day (Horovitz). Their products and services have transformed the way customers view coffee. Changing the way customers order, Starbucks makes it very chic to purchase custom drinks. Starbucks is like no other coffee shop: the dimmed lights…show more content…
These partnerships have led to a meaningful increase in profits. Licensed stores, another type of partner for Starbucks, make up a greater portion of the corporation than company-operated stores. According to Starbucks’ Fiscal 2009 Annual Report, licensed stores make up 39% of total Starbucks stores in the US and 62% of Starbucks stores worldwide. 3 As Starbucks continues to expand, more profits and more risks are in store. The corporation’s brand and reputation may be put at risk as the quality of the products supplied by third parties is outside of the company’s control (―Starbucks Corporation Fiscal 2009 Annual Report‖, 20). Partnering with farmers and suppliers meant letting go of control over the quality of certain products. In order to retain customers and protect their brand, Starbucks must establish and maintain effective working relationships with reputable farmers and suppliers, which could increase costs. Starbucks is also partnering with Chapters and Barnes & Noble. The high traffic in bookstores has led to a higher volume of sales for the company. In addition to the above channels, the company is working with NGOs to support the purchasing of fair trade coffee beans to reach long-term sustainability. Competitors Many coffee companies are currently in the market, making competition fierce. Although Starbucks has a strong reputation in North America, direct and indirect competitors still pose a threat. To establish market niche, competitors use location,

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