Starbucks Swot

Starbucks Corporation has been expanded greatly into international market since 1996. For instance, Starbucks entered the Tokyo, Japan’s market during 1996; United Kingdom in 1998 and in Mexico City during September 2002. Starbucks has doubled in the amount of stores it possesses since 2004, but it has consistently stayed at only a 30% international market. There are over 50 countries that consist of Starbucks which are Australia, Belgium, China, England, Germany, Malaysia, Singapore and others. It cannot be denied that Starbucks has a great base in United States but it greatly outweighs the base that it has throughout the rest of the world. So, Starbucks should expand its international market into more countries by putting more effort like

Starbucks started by just making and selling coffee and coffee making equipment but now they sell everything from thermoses to delicious frappachinos. They currently have over 22,000 stores around the world. They’ve recently opened stores in panama Colombia, Brunei, India, Costa Rica, Monaco and Norway. The company is a publicly traded company on the stock market. Starbucks specializes in food service and product supplies.

Starbucks is a major American company that was founded in 1971 by three college friends in Seattle, Washington. Jerry Baldwin, Zev Siegl, and Gordon Bowker at one time were all of different paths until they learned coffee roasting techniques from coffee entrepreneur, Alfred Peet (Starbucks Timeline, 2016). Alfred taught the three friends his particular style of roasting which ignited a spark in the trio and they were inspired to sell high quality coffee beans and roasting equipment. They soon started brainstorming names, and finally settled on Starbucks

While the international market presents a great opportunity for expansion, much opportunity exists nationally for Starbucks. Although Starbucks has built its brand on the strength of its national retail stores, through a diversity of other business opportunities it has enhanced its

Additionally, Starbucks register patents for their unique products where attract customer who looking for special or uncommon products. Starbuck’s every retailing outlet stores maintain a good environment for coffee likers. Where most of coffee likers are office works, they prefer a good location for refreshing their mind and a good cup of coffee to motivate them to continue on their works. Another main strength that Starbuck has is the fact that company hires and trains their employee with a high standard service mind, where they are motivated and in love with their job. Lastly, Starbucks maintain a good relationship with both suppliers and customers. Meanwhile on supplier’s side, they purchase in bulk amount to benefit from economic of large scale. With customers, they have a huge customer base loyalty since their product is socially accepted addiction as a luxury coffee brand. On the other hand, Starbucks also has many weaknesses. As a giant in coffee retailing market, it has a large market size. It’s hard for them to have an instant change on its system completely. Second, Starbucks mostly focus on their external expansion, this lead to lack of internal

Opportunities that Starbucks has to offer was on page 212 where they said they wanted to open up more places globally. By having more stores in this company globally, it will allow customers to have the chance to find their favorite drinks anywhere they go. On page 67 it states all of the diverse products that the company offers other than coffee such as handcrafted

In addition, Starbucks proposes to enter Russia. The company with its joint-venture partner, M.H. Alshaya, intends to open its first store in Moscow, Russia in the fourth quarter of fiscal 2007. Russia is one of the fastest growing economies in Europe. Economic growth combined with growing coffee consumption and popularity of western brands make Russia a key opportunity for Starbucks. The company intends to enter India through a joint venture. The coffee market in India is expected to grow by approximately 12% during the 2007-2010 period. New markets diversify the revenue base of the company.

In a world where consumers value convenience, price, service and quality, Starbucks has become a major identifiable brand and competitor worldwide. Starbucks operates under the retail coffee and snack shop industry and relies heavily on consumer confidence, spending, preferences and overall economic climate, making the industry highly volatile. The hiring and use of employees to perform the daily operational tasks and duties to provide service and various industry products become an important element in this industry. Because the skill set of the individuals hired in this industry are relatively low, the cost in wages are minimal. The industry reportedly has generated over $30.2 billion in revenue, $1.8 billion in profit and has seen a growth of 2.7% from 2009-2014. Future projected annual growth in this industry is forecast to grow 3.8% over the next five years (IBISworld, 2014).

Jerry Baldwin, Zev Seigl, Gordon Bowker and Zev Siegl were the ones who opened the first Starbucks in Washington in the year 1971. They sold high-quality coffee beans and equipment. The name “Starbucks” was named after the chief mate of a whaling boat, Pequod, Starbuck. The company started out by only selling roasted coffee and not brewed coffee. The coffee was bought directly from plantations.

Based on the Five Industry Forces, Starbucks’ industry has a high attractiveness due to the low threats of character rivalry, new entrants, and bargaining power of buyers. Starbucks is able to determine the strengths and weaknesses in their position in the industry. With this knowledge, they are able to implement strategies that minimize their weaknesses. Starbucks handled their high threat of substitutes by expanding their product range which gave customers more variety to choose from. Starbucks’ international program with benefits served as an incentive for their suppliers to continue providing them with high quality coffee beans.

Though many companies have fallen victim to failure due to unresolved weaknesses, Starbucks has adopted the attitude that opportunity is not only now here but everywhere. Through expansion into retail operations, technological advances, global expansion, brand extension and product distribution Starbucks has embraced opportunities with reckless abandon. As an answer to a weak international portfolio, Starbucks has

Faced with near-saturation conditions in the US - by 2007 it commanded 62% of the specialist coffee shop market in North America (Table 1 ) - the company has increasingly looked overseas for growth opportunities. As part of this strategy, Starbucks opened its first Australian store in Sydney in 2000, before expanding elsewhere within New South Wales and then nationwide (albeit with 90% of stores concentrated in just three states: NSW,

Extension: Starbucks is planning to open 1,200 new stores in year 2013, most of them in the U.S. and China.

Factors in the global environment provide both opportunities and strengths for Starbucks. Opportunities such as increased revenues, further expansions, and achieving their goal of becoming the most respected brand worldwide. Starbucks also faced threats. These threats include dealing with growing antiglobalization overseas and their huge risk of less return on each overseas store, this deriving from overseas operations being run by local partners instead of Starbucks

is about. In contrast, Starbucks has had a presence in North America since 1971. In