Swot Analysis of Starbucks

We would recommend Starbucks to focus doing advertisements and promotions on internet and television. In the high tech world, everyone has his or her own mobile phone or computer which can just read the news by clicking the certain website. So, Starbucks can attract their customers by decorating their own website and promote products to them. Starbucks should make different promotions. As an example, it can make a breakfast set which a cup of coffee comes with a piece of croissant. As Starbucks offered meals, it would be able to extend the product base greatly. Once the promotion has been shown in website or TVs, people may think of it and purchase the product. Starbucks can also make their brand more aggressively in order to convince people that Starbucks serves coffee which is superior to other coffee and beverages. Starbucks is not just stand for a cup of fresh coffee but it is about the passion for the soul of people, quality product and understanding the culture of coffee. Other than that, Starbucks may make a membership for customers to collect their points so that they can exchange gift. Hence, the customers can enjoy the rewards and they will choose Starbucks again for the next

Starbucks is dominant coffee brand in North America, which also is well-known worldwide. Established in 1971 as coffee shop oriented to a niche of coffee purists, in late 1980’s it turned to be a constantly growing chain of stores that sold whole-beans and premium-priced coffee to mostly affluent, well-educated customers. In years 1992-2002 company was showing at least 5% annual growth. And by 2002 Starbucks was serving already 20M customers in 5886 stores (both operated and licensed) around the globe, had $3.3 billion net revenues and was opening 3 new stores a day in average.

(3a): What trade-offs has Starbucks made? What different activity choices has it made from its rivals?

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.

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.

It can expand its supply network by increasing its global presence. Starbucks has great opportunities in growing economies. It should create coffee houses in places such as India and China, where it has invested modestly now. Starbucks can also broaden its target market by offering more products. They could perhaps increase the number of stores that sell beer and alcohol, which could considerably increase their sales.

Starbucks is striving to build a better company by expanding our focus in three areas that can have a significant impact. These areas include working with farmers to develop a future, bringing green retail to a global scale, and building opportunities for the younger generation.

This Module 1 SLP will be the first part of an in-depth market analysis. The company I have chosen is Starbucks Coffee Company. The first Starbucks opened in 1971 at Pike Place market in Seattle, WA. Eleven years later, Howard Schultz was hired by the company to be the director of retail operations and marketing. The first Starbucks with the current coffee house look and feel was opened in 1984 in downtown Seattle. The Starbucks headquarters is still located in Seattle, WA. Currently, Starbucks is relying on retail expansion, product innovation, and service innovation to achieve this long-term goal once set by current chairman Howard Schultz: “The idea was to create a chain of coffeehouses

These products, as well as the company’s Ready-to-Drink product line (bottled coffee and tea available in sizes and locations similar to what one would find Gatorade or Naked Juice), has allowed it to move beyond the simplistic produce-and-sell business model found at its stores and into the retail market. Having focused on the retail market for the better part of the last decade while still maintaining its store operations (now with more than 20,000 stores worldwide), Starbucks has seen its market share increase exponentially while its competitors, such as Dunkin Donuts, have seen far less success. (As an example, Starbucks has a market cap of $84 billion while Dunkin Donuts has a market cap of less than $5

Nonetheless, Starbucks is big enough that they have created an oligopoly. But like any other company they face the increasingly large task of not only serve their clientele, but be able to still make a profit. In order to stay competitive and still be profitable they need to reconsider their current business plan and focus on the demand for the quality instead of the quantity. The basis of this rationale would be to modify its business plan in order to respond to the needs of it clientele and be able to deliver on their wants. There is no such thing as an ideal profitability methodology, but if the product keeps its value and it is able to withhold its product differentiation as well as brand identification, the profit margin and its ROI would speak for itself.

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 Coffee Company was founded in 1971, opening its first location in Seattle's Pike Place Market. Starbucks, named after the first mate in Herman Melville's Moby Dick, is the world's leading retailer, roaster and brand of specialty coffee with coffeehouses in North America, Europe, Middle East, Latin America and the Pacific Rim. Worldwide, approximately 33 million customers visit a Starbucks coffeehouse each week.

The last strength would be that Starbucks have a drive thru. A drive thru is very convenient for those who are in a rush or just want to order their food in the car. Moreover, some examples of weaknesses would be the higher price points, lack of items in the food category, and generalized standards for most products. Although Starbucks always says that their products are the highest quality and the company's experience is unforgettable, the relatively higher prices of Starbucks products make them less accessible to the large population of lower-middle class and lower class consumers. Also, while Starbucks might be known for their frappucinos, pumpkin spice lattes, and big chocolate chip cookies, they don’t exactly have the most unique food market. Starbucks lacks a variety in the food category where consumers don't have a wide range of options to choose from. The last weakness is that most Starbucks products are also based on generalized corporate standards that make the products less aligned with cultural demands in some markets. Three examples of Starbucks’ opportunities would be the expansion of product mix and offerings, global expansion, and partnerships with other companies. Lately, Starbucks started to expand its mix by adding Tea

Starbucks dates back from 1971 and is based in Seattle, Washington. The company was founded by Gordon Bowker, Jerry Baldwin and Zev Siegl and it

In 1971, a coffee bean retailing store named Starbucks was opened by Jerry Baldwin, Zev Siegl and Gordon Bowker in order to sell specialty whole-bean coffee in Seattle. And the name "Starbucks" was from mate Starbuck in the novel Moby Dick. In the decade, Starbucks had five stores and a small roasting facility in Seattle till