Starbucks Essay

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Views: 174

Words: 1453

Pages: 6

Category: Business and Industry

Date Submitted: 04/10/2014 08:59 AM

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1.0 Introduction

Starbucks is a coffeehouse franchise that aims to deliver coffee of the finest quality and provide great customer service. Not only they take into consideration of their coffee but also their customers. They started out from one simple coffeehouse at Pike Place Market to now, a coffee house that is strong in their branding. They expanded to merchandising their very own mugs, coffee brewers and packeted coffee.

2.0 S.W.O.T Analysis

2.1 Strength

Being stringent on its choice of coffee beans, one of Starbucks's strength is that it serves quality coffee and a very reputable branding. They also have high technology whereby they provide free Wi-fi in their coffeehouses and also have their own Starbucks prepaid card, which will definitely attract the younger generation.

2.2 Weakness

One of the weaknesses is that coffee drinking may be common in the States but may not be so in other countries where coffee drinking is not essential in their daily lives. Furthermore, people in countries that have such drinking culture thinks that Starbucks coffee prices are unjustifiable as there are many other options to choose from, and may be more value-for-money and of better quality. On the other hand, due to their established branding, Starbucks merchandises are being recognised too. Thus, making Starbucks more than just a beverage company.

2.3 Opportunities

However, the weaknesses can be overcome, as the influence of the States can be quite overwhelming. Starbucks is slowly breaking into a globalised market with branches overseas that has recognition; hence partnerships with other companies are inevitable. Therefore, this influence may be an overcoming factor even in countries that do not have such coffee-drinking culture.

2.4 Threats

One of the threats is that public thinks that the prices of coffee are slightly overcharged. Eventually competition arise when new entrants to the coffee industry offers coffee at a more affordable price. In...