Swot Analysis : The Matrix

* Starbucks has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may falter over time.

As Starbucks' strategic vision evolved over the years, so did its strategy. Starbucks current strategy in comparison to its original competitive strategy are: to continue the focus on growth; to establish a leadership with company owned stores in key markets such as USA, Japan, Australia, and UK; to pre-emptively enter and aggressively grow in all targeted markets; to leverage the brand into new product categories and channels; to continue operations improvement; to growth through innovation; to develop and maintain leadership talent; and to maintain their values, culture, and guiding principles. The key elements of Starbucks current strategy is to expand Starbucks globally, and to further develop its internet business. The strategy has changed over time as the business has grown exceptionally well in North America, and now they want to take that success over sea.

Starbucks utilizes a differentiation business model by offering an overall unique and high quality experience for the consumer. From the high-quality food and drink options, to the uniquely roasted coffee and supreme customer service, Starbucks aims to provide an experience unobtainable anywhere else. Starbucks also focuses heavily on rapid expansion by seeking out profitable geographical areas and overcrowding those areas with stores in order to exploit profits and slow down competitors. Starbucks’ compliments this with its horizontal acquisition strategy, extending their product line through acquisition of competitors. This provides Starbucks with a differentiation strategy focused on providing a diversified product mix

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. They wanted to continue to grow stores and by the companies wanting to continue to branch out globally by having continuous competition across the world. Another strength that this company has to offer is Starbucks is the leader of the coffee market. It is a strong brand to compete with. It is hard to go against them because they are always thinking outside of the box which is stated on page 211. Another strength that this business has to offer is on page 211 where Starbucks has always strived to be a good neighbor by providing a place for people to come together and by committing to supporting financially in where stores are located.

This key acquisition is one of Starbucks’s main strategic goals for diversifing its brand by

It is very clear that Schultz’s vision has changed two times and the latter was different  from the one before. The difference comes from the change in the position of Starbucks in market place and its future direction. The current strategy for Starbucks no longer concerns adding simply a new service within their stores but revolves around increasing their sustainability, increasing corporate responsibility, being the undisputed coffee leader in the worldwide marketplace, expanding their global presence, and creating innovative growth platforms.

Strategy is a balanced problem, sometimes difficult (Allard, 2004). Ultimately, the strategy is about making a choice, the company will succeed if chose a unique strategic location which is different from the position of each competitor (Markides, 2000). One of the key ways Starbucks has pursued since its inception is the separation of items, separate items such as premium items, regional, espresso drinks, notorious and noteworthy customer interests, becoming a highly valued counterparty high.

The SWOT analysis aims to provide a short overview of a business’s current strategic situation by analyzing its internal factors, being strengths and weaknesses, alongside its external factors that might have an impact on the businesses strategic choices, being the entity’s opportunities and threats (Anja Böhm, 2009: 1). The SWOT analysis is ultimately a tool which is used to analyze a business’s current situation in the market place and aims to identify a strategy for successful development using the overlap between the internal and external factors. The acronym ‘SWOT’ simply stands for ‘strengths, weaknesses, opportunities and threats’ (Nadine Pahl & Anne Richter, 2009: 27).

Starbucks opportunities are; entry into the health and wellness space, growing presence in certain Asian markets, growing their mobile commerce market, and growing their office coffee marketplace. Their threats are extreme competition and compliance costs associated with government regulations (MarketLine 27)

In today's business environment, an effective strategy is critical for an organization to attain its vision. A company must reflect upon internal strengths and weaknesses, external opportunities and threats, and consider the associated trends using benchmarked companies. One company who’s made this recognition is Starbucks. The company recognizes the major strategic issues involved as protection of coffee growers to achieve future supply, keep the brand image and remain innovative, new market strategy, leadership and culture.

Detail Analysis SWOT Analysis Strengths * The reputation of brand name and image Strong brand name and image of Starbucks allow brand recognition and consumer retention. Therefore, the expanding of stores to other countries is easier and proficient.

Starbuck has an aggressive strategy which revolves around market domination and global expansion. The tactics that Starbucks employ creates a workplace that ensures employees satisfaction, quality products, and happy customers. The aim of the strategy is to expand rapidly in to a market and have total domination before moving on to their next target. Through this tactics, Starbucks hope the following expansion would create a higher barrier to entry which would deter competitors from expanding and if possible to drive competitors into submission so acquisition is possible

The SWOT analysis was originally introduced by Andrews Christiansen, Guth and Learned in 1969 and its basic organizing principles have remained largely unchanged in the field of strategic management. [BADEN-FULLER, C. H. A. R. L. E. S., & STOPFORD, J. (2002). The Firm Matters More than the Industry. Strategy for Business: A Reader, 123.] It is a systematic framework which helps managers to develop their business strategies by appraising their internal and external determinants of their organization’s performance. Internal environmental factors include leadership talent, human resource capabilities, the company’s culture as well as the effectiveness of its policies and procedures. External factors include competition, government legislation, changing trends and social expectations.

Innovation: Starbucks has strived to gain an edge over its competitors. This is done by creating innovative methods to provide efficient products and improved services to the customers (Simon, 2009). The degree of innovation at Starbucks had continued to increase as the years have passed by. The new recruits are encouraged to increase the efficiency of the products and services at the company.

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