Marketing

Swot Analysis

Strengths | Weaknesses |

1. Market Leader in Coffee 2. Has 9000 Cafes in 40 Countries 3. Top Quality Roasted Beans 4. Very Low Turnover Rate 5. Coffee shops at prime locations i.e. Universities, Shopping Malls 6. Strong Brand Image 7. Customer Focused 8. Highest level of Excellence in Services | 1. Low advertisement 2. Higher Prices as compared to competitors. 3. High Operating Cost 4. Less control over stores outside U.S 5. Low profit margin due to high product cost. 6. Moving away from Core Business. |

Opportunities | Threats |

1. Focusing on expanding globally 2. Online Sales via Internet 3. Co-branding with other food and beverage manufactures 4. Getting to Asia focusing on India 5. Expand convenience by adding drive thru. 6. Develop new products to appeal non – coffee drinkers | 1. Increase level of inflation. 2. Lack of ownership on coffee farm. 3. Many companies are pricing their products lower to attract customers. 4. Current recession may impact the sales 5. Numbers of competitors are increasing due to low barriers to entry. 6. Variation in coffee prices in developing countries. 7. Shifting in buyer’s tastes and needs. |

Strategies

* Utilizing the knowledge of different cultures and getting into Asia

* Being Customer focused can get into new product lines to appeal non – coffee drinkers

* Expanding globally required increase in advertisement

* Utilizing strong brand image to focus on shifting tastes and needs

* Develop low cost / low priced non – coffee product.

* Moving away from core business and focusing on shifting tastes and needs.

* Expanding globally while offering relatively lower prices

* Cashing market leadership while expanding globally.

References:

www.google.com

www.starbucks.com

www.wikipedia.com

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