Strengths And Weaknesses Of Starbucks

Starbucks is rated as the number one World’s leading coffee distributor. Customers satisfactions are always be in the center of their business and the company works consistently to maintain it as customer look forward to a unique experience when visiting one of Starbuck stores. With over 12,000 stores worldwide, Starbucks has always aimed at achieving and maintaining competition in the industry.  Starbucks success reside in many factors :  the company is admire and respected worldwide,employees are recognized and respected for what they contribute to the success of the company. Open communication

Starbucks has created a competitive advantage with their product quality by setting themselves apart from their competitors. “The Company has stayed with the upper-scale of the coffee market, competing on comfort rather than convenience, which is the case with its closest competitors, McDonald’s and Dunkin Donuts” (Mourdoukoutas, Panos). Consumers believe they are receiving a better product and experience when they purchase from a Starbucks as opposed to another large food service company that may sell coffee.

Starbucks is no doubt a phenomenon in the United States, but the brand wants to expand globally. Opening chains in various global locations such as Japan, Vienna, England; Starbucks wants to reach out to the coffee loving fans everywhere. Nevertheless opening chains globally is not that simple. There are many uncontrollable factors Starbucks need to focus on to make sure they are making profit as well has abiding by the country’s laws and regulations. Going global takes a lot of market research to make sure that the brand will be successful even with uncontrollable factors. Controllable factors can be tailored to fit the needs of each country. Starbucks has to find the happy medium so they don’t lose their identity overseas.

Several key success factors exist for Starbucks, a leader in the coffee industry. They include

Also Starbucks currently has Number 1 share in coffeehouse market, where their brand valuing them at $4 billion. This tells that Starbucks has a strong brand reputation which is associated with quality of coffee they provide and excellent customer service. Its brand is the most valuable strength they have over the other competitors in market. Their financial status is also a strength they possess. Starbucks profitability has consistently been on the rise for the past 4 years and is now 14%. The company also outmatches its nearest competitors such as Peet’s Coffee and Tea, with 24.5% ROI. Starbucks also possess largest coffeehouse chain internationally. Starbucks manages around 20,000 coffeehouses in over 60 countries, making it the largest coffeehouse chain in the world. Starbucks employee benefits and care are one of the best in the world. The company offers its employees wide range of benefits regardless of their status, and has higher wage than most of its competitors.

However, there was a significant differentiation between Starbucks and the independent specialty coffeehouses. The brand image of Starbucks also had some rough edges. More customers were beginning to agree with the fact the Starbucks cared primarily about making money and building more stores. Also, despite the high customer snapshot scores customer satisfaction scores were declining. It was believed that there was a service gap between Starbucks scores on key attributes and customer satisfaction. In polls by customers “improvements to service,” particularly speed of service, was most mentioned for improvement.

Starbucks is one of the most recognized brands in the world. Since 1971 Starbucks has become synonymous with coffee which they used to embody the brand and create a lifestyle behind it. Starbucks wants the world to know they have more to offer than coffee and are committed to meeting the needs of society. “We’re not just passionate purveyors of coffee, but everything else that goes along with a full and rewarding coffeehouse experience. It’s not unusual to see people coming to Starbucks to chat, meet up or even work” (Starbucks). In addition to coffee Starbucks locations keep a customer base by offering free Wi-Fi, music, and partnerships with Barnes and Nobles throughout the country. Starbucks is aware that competition is gaining ground

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

Starbucks has a significant geographical presence across the globe. It has been recognized for its high quality coffee and for the exceptional service experience they provide. It is the first coffee retailer in the world with the highest market share (Business teacher organization, n.d). Nowadays, Starbucks has operations in over 60 countries and a total number of 22,519 stores as of June 28, 2015 (Starbucks website). Also, it is the most recognized brand in the coffeehouse sector and is ranked as one of the most admired companies in America in 2015 (Starbucks website). Starbucks effectively strengthen its brand equity by merchandizing products and licensing its brand logo out. This strong market position and brand image has given the company a significant competitive advantage for growing in both national and international markets (Geereddy, n.d).

Has Starbucks has done well in Turkey? What are some of the common growth drivers in terms of consumer characteristics, market characteristics, and entry strategies across USA and Turkey that might account for Starbucks’ success?

When asked why so many people go to Starbucks, the most apparent answer would be simply because it is convenient. For many people, this is true. With so many store locations, it makes it an obvious choice for everyone. In most cases, convenience plays a factor; in some cases it is the only factor. I spotted a student eating a sandwich from the bakery at a table outside of a Starbucks. When I asked how often she visits Starbucks she replied by saying that she only goes about twice per month and

Starbucks has been considered the top provider of the finest coffee bean and coffee drinks in the world. Anyone who loves a good cup of coffee knows that Starbucks is the top choice. No matter where you are in the world, you will see an inviting Starbucks store with this amazing aroma of freshly roasted and brewed coffee, nicely lighted space, great seat lay-out, free wi-fi, and just a comfortable space to hang out. The baristas behind the green apron are wondering people delivering nothing but the best “Starbucks experience”. Over 4 decades of successful business, Starbucks has grown into a well-known brand in every household, not only in the North America, but even in Europe, Mediterranean, Middle East, and Asia, It has become so popular that its name does not even necessary to be printed in most of its products, and the Starbucks logo is what they all need. In this paper, I aim to discuss the company’s strategy behind its great success. Also, I will provide feedback as to how the company is operating in the Philippines [which is my home country].

Everyday that we go shopping we want to buy our daily coffee and think where would the best place to be to to buy our favorite coffee products.Starbucks is a major coffee company that we have in America as well as being expanded around the world. By using the SWOT analysis we noticed how Starbucks is falling apart and what can be used to make the company the way that it is set up. In businesses we choose to buy a product based on the convenience of the place and the quality of it.

Besides that, Starbuck realize that the element of human is a very important chain in success in the industry. But they are not start with the top of the human resource but from the bottom one. That is why they have a lot of places to educate for the new employees. According to many survey and research, Starbucks is one of business place have the best customer service. Every time I come to Starbucks, the employees there behave very friendly and helpful. They tried to serve customers with the best behaviors which they studied from Starbucks. Even if any customers complained anything about the drinks or food, they also be friendly and smile, after that, that employees tried to fix the problems. That makes people are willing to spend money in this brand name than the others like Dunkin’s Donut or Mc Donald even though they are also have some similar products. The products that Starbucks sell in their store is not only the coffee but also the value of brand name and the feeling of respect when people come there. Starbucks can become a place for students who want to go for group work, it is also become a place for people who can come for do business and discussion or the basic idea is a place to enjoy a cup of coffee. In any purpose, Starbucks can perfectly become a good place for that. The atmosphere which Howard tried to create for Starbucks is suitable for many kinds of people.

The 1971 founded company Starbucks has undergone an impressive expansion throughout the last years and as a result now is the leading coffee house retailer in the world. Due to several joint ventures, partners, and an enormous amount of directly operated stores, it is present in more than 34 countries and serves around 33 millions of customers per week.1 Moreover, the company significantly increased its global publicity within subscribing to strategic alliances with various hotels, air carriers, schools, and stadiums.