Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
SWOT Analysis: Starbucks
The overarching goal of a SWOT analysis is to identify those issues that will provide practitioners with the information they need to develop an informed strategic approach or analyze an entity of interest (Cravens 37). In sum, a SWOT analysis identifies the respective strengths and weaknesses which are internal to the entity as well as opportunities and threats which are external to the entity (Cravens 37). This paper provides a SWOT analysis of Starbucks, followed by a summary of the research and important findings concerning this company in the conclusion.
Strengths
With more than 22,000 retail outlets in 67 countries, some of the major strengths of Starbucks's (hereinafter alternatively "the company") include its market saturation (the Starbucks brand includes Starbucks Coffee, Seattle's Best Coffee, Teavana, Tazo, Evolution Fresh, La Boulange, Ethos Water and Torrefazione Italia Coffee), commitment to quality and enlightened human resource policies which have provided the company with a sustained competitive advantage in a highly competitive marketplace (Company profile 2). In fact, the company only purchases its coffee beans from trusted business partners that have a proven track record of quality production (Company profile 3). Comment by Hassan: Not in your reference list? Is this from...
For instance, Allerton emphasizes that if you order a latte five days a week on your way to work every week [from Starbucks](deducting vacation time). The total: $921.20" (136). While a $6 cup of coffee may appeal to some consumers, it is reasonable to suggest that Starbucks has priced itself out of the price range of many consumers in the markets in which it competes. The company also suffers from a high level of unplanned employee turnover which adds to its operating costs (Allerton 136).
Opportunities
As noted above, at present, the company operates retail outlets in 67 countries but these are primarily located in the United States, Asia, Europe and the Middle East, and the only African country in which the company competes is Egypt (Company profile 5). Coffee is enormously popular, though, in a growing number of African countries today, making these countries a viable opportunity for the expansion of the Starbucks' brand in the future (Cafe society 51). In addition, the company could expand its product and service offerings to include office party or private event catering.
Threats
Although more…
Works Cited
Allerton, Haldee E. (2004, May). "Ode to a Coffee Urn: Common Grounds."Talent Development58(5): 135-139. Print.
"Cafe Society: From Humble Beginnings as Both Food and Drink for African Hill Tribes as Far Back as the Ninth Century, Coffee Has Evolved into a Global Phenomenon." (2009, August). Geographical81(8): 50-55. Print.
Cravens, David W. Strategic Marketing, 6th Ed. New York: McGraw-Hill, 2000, Print.
"Company profile." (2016). Starbucks. Web.
Starbucks' Human Resource Management Policies and the Growth Challenge In recent years, there has been much interest in the notion of "high commitment" human resource management (HRM). The high commitment HRM is focused on developing self-regulated behavior among employees that is based on mutual trust rather than external sanctions and pressures. Considering this premise, this paper provides a review of the relevant peer-reviewed, scholarly and organizational. literature concerning the advantages of
Starbucks Innovation Competencies Last year, I wrote to you that the company's improved operational foundation, invigorated innovative muscle, and heightened customer relevance presented us with an opportunity to build a different kind of organization. One that would leverage and extend our strengths both inside and outside our stores. I am pleased to report that in fiscal 2011 we delivered. Howard Schultz, Starbucks Chair, FY2011 Annual Report -- Welcoming Message Starbucks is often thought
STARBUCK'S STRATEGY AND INTERNAL INITIATIVES FOR PROFITABLE GROWTH Starbuck's Strategy and Internal Initiatives to Return to Profitable Growth Starbuck's Strategy and Internal Initiatives to Return to Profitable Growth Strengths Weaknesses Opportunities Threats Michael Porter's 5 Forces Model Industry Competition Threat of New Entrants Buyer's Bargaining Power Bargaining Power of Suppliers Formulate Strategic Marketing Improve Standing of Stock Market Starbuck's Strategy and Internal Initiatives to Return to Profitable Growth As Starbucks was expanding, another emphasis was set on hiring talented leadership in managing the huge momentum
Starbucks Coffee Marketing Plan Industry Overview Competitive Landscape Target Markets Product Price Promotion Marketing Strategy Starbucks is a global coffee powerhouse that has had a success record that nearly any company would die for. It has never undertaken much a traditional route in regards to marketing and advertising. Starbucks specialty is using word of mouth, tribal, and viral social formats to promote its products and services. It is recommended in the wake of global populist movements that Starbucks further
However, the company has in general enjoyed success overseas and as a result international sales now account for 27% of operating income (2010 Starbucks Annual Report). The international division remains a key source for growth at Starbucks, in particular the Chinese market, where Starbucks has enjoyed considerable success and now sits at over 500 stores. The company struggled in the mid-2000s due to two main factors. The first was the
Starbucks in India Identifying Global Opportunities Global Business Opportunities Starbucks is a global retailer of coffee, and is seeking new growth markets, since its largest markets (U.S., Canada, UK) are all mature. The company has nearly 20,000 stores (2011 Annual Report). The company has premium positioning in the market with its brand, logo and patents providing key intellectual property to expand globally. Potential Markets When looking for potential markets, Starbucks seeks the opportunity to license