Strengths And Weaknesses Of Starbucks

As the world’s number one specialty coffee retailer, Starbucks sells coffee drinks, food items, coffee beans, and coffee-related accessories and equipment. In addition, Starbucks sells whole-bean coffees through a specialty sales group and grocery stores. Starbucks has grown beyond coffee into related businesses such as coffee-flavoured ice cream and ready-to-drink coffee beverages. The purpose of this paper is to analyze Starbucks business strategy, customer value proposition, company’s operations and the risks to financial results and reporting in the short term.

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

Did you know last year Starbucks made 10.7 billion dollars? Who here has ever been to Starbucks? Well I have, they have delightful hot and cold drinks and scrumptious desserts. But did you know Starbucks also owns Teavana. Today I’m going to talk to you about one of the world’s most well-known coffee shops in the world; Starbucks.

The coffee industry has become a very competitive and expanding market segment in North America, including companies like Dunkin, McDonalds, Nestle, Burger King, Caribou Coffee, and Costa Coffee. The top leading coffee corporation in this market is Starbucks with Dunkin and McDonalds trailing close behind. This corporation has reached a maximum 36.7% market share, well above Dunkin ranking at 24.6% and McDonalds at 19%, with Starbucks and Dunkin making up over 60% of the market share (Geereddy, 2013: see appendix 1). Starbucks is a retailer, roaster, and marketer of high-quality whole bean coffee. With more than thirty blends of specialty coffee, hand-crafted beverages, smoothies, and teas, Starbucks’ mission is to inspire and nurture

Starbucks portray a number of issues that may affect the company’s’ growth in the near future. To clearly understand these issues, they will be analysed in order to understand and create recommendations to assist in the growth of a successfully company.

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

“Starbucks is known as one of the foremost retailers, roasters, and brands of speciality coffee in the world after working hard in getting succeed.” They are obligated to offering customers the premier quality coffee and the highest coffee familiarity, while functioning in techniques that generate social, environmental, and economic advantages for the society in which they do their business. (Super brands, 2012) Similarly, “they are functioning and authorization beyond than 8,500 coffee shops in more than 30 countries. (Starbucks, 2013). Furthermore, they offer a variety of regular or decaffeinated beverages, comprising at least one coffee of the day with our own choice of Italian-style espresso beverage, cold blended drinks, and a variety of finest teas and packaged roasted high quality of entire bean coffees.” (Starbucks, 2013) They also offer a variety of fresh pastries and confectionaries, sodas, juices and coffee making accessories. Furthermore, they wholesale their whole bean coffees via famous trade group and supermarkets. (Starbucks, 2013) Additionally, they manufactures and wholesales bottled Frappuccino Coffee drink and a finest ice creams via its joint ventures, partnerships and proposals by its entirely owned supplementary, Tazo Tea Company. The company’s main attempt is to touch the success and become the famous and respected brand in the world.

Starbucks Corporation is an American coffeehouse chain, founded in Seattle, Washington in 1971. It operates worldwide and has been experiencing revitalized prosperity. They have grown to more than 23,043 stores in over 68 countries and have about 238,000 employees. (Appendix 1) At that time the company was a single store and offered one of the world’s finest fresh roasted while bean coffees. Now, Starbucks also offers a selection of premium teas, fine pastries and other delectable treats to please the taste buds. They are committed to creating global social impact in neighborhoods around the world. From the start, it set out to be a different kind of company. One that not only celebrated coffee and the rich tradition, but that also brought a feeling of connection. (Bain, 2016)

The return Of Howard Schultz as CEO in 2008, he brought strategic tools to support the macro-environment changes in the market. The mission statement as per the company profile is as follows:

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?

Weaknesses that the company was stated on page 68 stating that the company was no longer interested about the quality of the product, but they were more interested about what sales that they make. They are one of the most leading coffees businesses that is known globally but having this issue for only wanted to make money can shut down their business more than they can even think. This is what made the company lose their cool factor. Another weakness that the company has been mixing the strategies that America has with how business works in Europe.On 210 they discuss how it is hard to match up the cultures. It is hard to clash those two cultures together, but they state that the biggest challenge for Starbucks may be trying to appeal to the vast array of European tastes.

The Indian coffee is said to offer a subtle balance of refinement and stimulation. Just light and not too acidic, these coffees exude a distinct full-bodied taste and a fine bouquet. It has a rich cultural flavour too.

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