Swot Starbucks

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Views: 208

Words: 330

Pages: 2

Category: Business and Industry

Date Submitted: 11/06/2013 12:55 PM

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Strengths:

* It is a global coffee brand built upon a reputation for fine products and services. It has almost 9000 cafes in almost 40 countries.

* Starbucks has a strong brand reputation associated with quality coffee and excellent customer service. Its brand is the most valuable brand in coffeehouse segment and is valued at $4 billion.

* One of the strongest advantages Starbucks has is the experience it delivers to its customers with perfectly blended coffee, premium music, friendly staff and warm atmosphere, which results in incomparable customer service.

Weaknesses:

* Starbucks offers great coffee and customer experience but that results in high price of its products. In comparison, McCafe premium coffee was price lower than Starbucks coffee and was better evaluated.

* The organization has a strong presence in the United States of America with more than three quarters of their cafes located in the home market. It is often argued that they need to look for a portfolio of countries, in order to spread business risk.

* The organization is dependent on a main competitive advantage, the retail of coffee. This could make them slow to diversify into other sectors should the need arise.

Opportunities:

* New products and services that can be retailed in their cafes, such as Fair Trade products.

* The company has the opportunity to expand its global operations. New markets for coffee such as India and the Pacific Rim nations are beginning to emerge.

* Co-branding with other manufacturers of food and drink, and brand franchising to manufacturers of other goods and services both have potential.

Threats:

* Who knows if the market for coffee will grow and stay in favor with customers, or whether another type of beverage or leisure activity will replace coffee in the future?

* Domestic threats include more affordable designer coffees at fast food restaurants, donut shops and personal coffee makers that are just as convenient but...