Swot / Tows Starbucks

1183 Words Nov 14th, 2007 5 Pages
Strengths
• Global presence
Starbucks has a widespread global presence. The company operates about 13,168 retail store locations. The company 's widespread presence provides it with widespread brand recognition and a strong customer base.

• A disciplined innovator
Starbucks is a disciplined innovator. The company effectively manages its innovation time line generating consistency in same store sales. Starbucks ' ability to roll out new products relatively quickly is a considerable competitive advantage for the company.

• Increase in revenues and profits
The company recorded revenues of $5294.2 million during the year ended September 2004, an increase of 29.9% over 2003. The company 's revenues grew at a compounded annual growth
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The actions of these associations could cause a degree of disruption to Starbuck 's operations.

• Rising dairy costs
The company faces the threat of rising dairy costs. Dairy prices have risen considerably and this could adversely affect Starbucks ' margins. Milk and other dairy products represent between 3% and 5% of sales, and sustained increase in prices could affect the company 's margins.

• Competition

Major Retailers # of stores Location
• Starbucks 13,168 40 countries
• Diedrich Coffee Inc. 515 14 countries
• Caribou Coffee 300 12 states
• Dunkin Donuts 6,000 Many countries
• McDonalds 31,000 100+ countries
• Krispy Kreme 390 44 states and international

The global coffee market is a very competitive sector, and Starbucks must compete against the likes of restaurants, coffee shops, and street carts. A major competitor, with substantially greater financial, marketing and operating resources than Starbucks, could enter this market at any time and compete directly against the company. The US specialty coffee market continues to grow, and an increasing number of firms are looking to enter the market. Starbucks must be aware of competition on all levels and maintain its operational performance if it is to retain its status as the world 's leading specialty coffee retailer.

TOWS Matrix

Strengths / Opportunities
In general, successful firms build on their strengths to take

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