Swot Analysis: Starbuck’s

290 WordsMay 13, 20142 Pages
SWOT Analysis: Starbuck’s Strengths 1. Established logo: Starbucks owns the most recognizable brand in the specialty coffee business and its experience is an irreplaceable differentiating factor. 2. Employee management: It offers its employees extensive range of benefits. For example, a pay rate higher than paid by competitors. 3. An international Brand: There are around 20,000 coffeehouses in 60 countries, making it the largest coffeehouse chain in the world. Weaknesses 1. Product price: Starbucks products are more expensive compared with the competition. That’s why customers could easily switch to lower priced alternatives in times of economic hardship. 2. Coffee beans price: Bean is a primary product and cannot be controlled by Starbucks. Because of hedge funds and weather conditions, beans’ price may rise sharply. 3. Health problem: Health implications of coffee consumption such as caffeine may be debated. The company´s products have high calories and fat content. Opportunities 1. Global: There is plenty of room for growth in emerging markets. 2. Increase product offerings: Modified food offerings, juice, energy drinks and some alcoholic drinks are ways to attract different kinds of customers. 3. Retail operation: The firm should form more partnerships and offer to sell its coffee. For example, in supermarkets, pharmacy, and convenience store. Threats 1. Competition: Local cafes can offer much lower price and more suited menu for its customer. Furthermore, McDonald´s and Dunkin' Brands would be competitors. 2. Saturated markets in the developed economies: Coffee markets in the developed economies are already saturated. It is hard to grow sharply in this market. 3. Cultural and Political issues in foreign countries: They need to care about them. For example, political tension over the war in Iraq has caused anxiety between France and the

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