Swot Analysis : Starbucks Operates

Background information: Starbucks is one of the biggest chains of cafés on the planet with 22,551 stores in 66 nations and domains, incorporating 12,739 in the United States, 1,868 in China, 1,395 in Canada, 1,117 in Japan and 830 in the United Kingdom. It was established 44 years ago – March 30, 1971 in Seattle, Washington, United States by three partners Jerry Baldwin, Zev Siegl, Gordon Bowker. The company entered global market after 25 years operations in domestic market in 1996 by opening store in Tokyo, Japan. Starbucks currently, serves hot, cold beverages and non-coffee items – sandwiches, deserts and CDs with their creation history all over the world. According to Wikipedia, in 2014, Company had more than 191,000 employees globally and theyt made revenue of $16,447 billion with 13 % net income.

Starbucks is a highly known company and a predominant brand in multiple countries. The idea behind all of it was to not only serve name brand coffee but to be a third home for everyone throughout their busy days. Founded in 1985 by Jerry Baldwin and Howard S. Schultz, they settled the company in Seattle Washington. The owners found their niche in the food and drink market, and the brand of Starbucks makes each purchaser know what kind of quality they are purchasing. It has now become the world’s largest international brand and product with great success. Starbucks internal capabilities of the company help make it more successful while dealing with the external environment to find the perfect balance to create a competitive advantage and

Starbuck’s began their journey in the coffee market with the grand opening of a small cafe, back in 19711. The name for this company is quite unique and there is a clear back story behind this. The original owners were inspired by the story of Moby Dick and its thought to “evoke the romance of the high seas and the seafaring tradition of the early coffee traders.” Since the first Starbucks store, the company was famous for its community development and its active participation within society. Starbucks began to witness great change within their company once their management changed, in 1987 Harvard Shultz was appointed the Chief executive officer. Inspired by the traditional Italian design, Schultz adapted this design and integrated it within the lighting, layout and music choice played in the cafe’s. As a

In the United States specialty coffee sales have reached the multibillion dollar level and are increasing on an annual basis. (Coffee Universe, 2011). This is one of the reasons why there is such a great market for coffee houses, coffee baristas, coffee mugs, coffee makers, and coffee companies like Starbucks.

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

Starbucks has become impressively dominant in the U.S. coffee retail industry. By the end of fiscal year 2005,

Now Starbucks total coffee supplier, the retail market in the United States because it is user-friendly, because it organized a music and book events and Wi-Fi connection, all outlets like a home or office (Ferguson, 2002) popular . Unlike other popular food industry, such as McDonald's has been providing marketing authorization and super stores, generating large revenues through its presence in the store. Revenue generated by the company is basically through the entire bean coffee is 76 percent, followed by equipment that is 18%, through food and drink is quite insignificant 3%

SWOT analysis is a key systematic apparatus that is utilized to assess the qualities, shortcomings, opportunities and threats connected with a business (Kotler and Keller, 2006). In addition, "SWOT analysis seeks after an incorporated methodology including key organization and ecological variables. The target is the showdown of the organization's inner qualities and its shortcomings, and, organization outer business opportunities and dangers so as to create conceivable key alternatives" (Bohm, 2009, p.1).

One of the main strength of Starbucks is their robust financial performance which in turns helps it to become the market leader in the category of coffee. According to (Forbes, 2014) Starbucks Market cap is around $55.94 Billion which is the main edge over its competitors. Achieving the Top of the mind strategy, whenever we listen coffee or best customer care and quality, we automatically refer Starbucks in our mind. With over 21000 stores in more than 65 countries, it shows great expansion and connection in the world (www.Starbucks.com). Due to great expansion, Starbucks can afford a premium price of coffee and other products. Starbucks is known for its management skills in terms of quality and customer service. They put a lot of emphasis on people skills and soft skills which is critically important in terms of success and failure. It creates a soft ambiance for its employees in which they remain happy and at the end of the day they make customers happy. My StarbucksIdea.com enable customer to provide their feedback on the customer and product services. On the other hand Starbucks uses experiential marketing, in which customer always wanted to experience the environment of Starbucks.

Millions of people enjoy refreshing cups of coffee regularly served from Starbucks outlets worldwide. The company commands a large following and is a preferred brand of choice for myriad individuals globally. The business runs successful regional outlets through engaging exemplary customer relationship models in managing customer relations and brand image. At Starbucks, there is an upbeat enabling environment that incorporates helpful and friendly staff who are well trained in handling customer needs, concerns or problems with their coffee or services. According to Michelli (2007), the current company structure is founded upon various business models that support the continuous management of company principles and enable elaborate organizational structure. Starbucks’ Vision Statement is to become America’s “Third Place” of choice to complement work and home. In addition, its goal is to establish the company as “the most recognized and respected brand in the world.” Moreover, it surges its marketing objective in commodities which significantly include coffee, service and the atmosphere (Meyer and Schwager, 2007).

Over the past twenty five years, Starbucks has been leading the coffee revolution and turned a dying industry upside down by mainstreaming their stores and creating a public fascination. From the beginning of Starbucks stores through 2006, they have opened stores all over the U.S. and will be taking it overseas. Starbucks is leading the coffee revolution and has expanded their reach all over the world. With this much growth, it is easy for the company to lose their edge by forgetting the reasons they have become so large from the beginning. In this analysis, I am going to go over an economic assessment, marketing

Market positioning and growth strategies play an instrumental role in sustaining the competitive advantage in the highly competitive global beverage industry (Frigenti, 2012). By analyzing the strategies adapted by the Starbucks, one of the leading global coffee retail chains in the world, this report will provide insights about the latest trends and the key factors that play an influential role in beverage industry (Dermot, 2013). This report will also discuss various opportunities that case study organisation can look into to improve its profitability and will also outline the key threats it needs to tackle in the future to remain competitive in the market.

Starbucks, unlike other American restaurant chains, typically favor one of two business models: the standard retail business model or the license model. To this day, most of Starbucks net revenue is generated by the retail locations the company owns. Starbucks targets highly populated areas with large volumes of foot traffic. Additionally, Starbucks is accommodating globalization by loosening its licensing agreement requirements, and using pieces of the franchise model to rapidly expose itself to developing markets’ share.

One of the biggest strengths that allow Starbucks to create competitive advantages is Starbuck’s strong brand influence. Over the past 46 years, Starbucks has already grown into the largest coffeehouse company in the world from a local coffee store in Seattle. Nowadays, Starbucks has involved in many people’s daily routine and lots of them cannot get through a day without Starbucks. When people talk about a good coffee store, they would remember Starbucks and its Siren Logo at once. Thanks to its easily identifiable logo, Starbucks has successfully implemented the connection between the image of a topless mermaid in green and coffee into many people’s mind.

globe, we are the premier roaster and retailer of specialty coffee in the world.” The