Analysis of Various Component of Starbucks
Added on 2021-05-30
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ANALYSIS OF VARIOUS COMPONENT OF STARBUCKS1ANALYSIS OF VARIOUS COMPONENTS OF STARBUCKSCourse:Professor’s Name:Institution:Location of Institution:
ANALYSIS OF VARIOUS COMPONENT OF STARBUCKS2Analysis of Various Component of StarbuckAs it stands, Starbucks Coffee is the largest coffeehouse in the world. The company`s yields sufficient production by keenly putting into practice the factors of growth and development. It does not underrate the challenges during operation, thus able to identify and make significant changes for the best. This means the firm implies the use of SWOT analysis. The first two parts of the analysis focus on the strengths and weaknesses of the firm respectively.The second part, which is about the company`s interaction with the external environment analyzes opportunities and threats (Helms and Dixon 2013, p. 219). It is the result of SWOT analysis that identifies the component of Starbucks as the study seeks to establish.One key strength of Starbuck is established strongest and the most popular brand. Notably, Starbucks has developed a premium coffee house chain in comparison with other food chains, regardless of their presence in large number. The products are characterized as high quality, healthy to the environment and consistent in many regions. Therefore, in case they raise prices, consumers are still willing to buy. This means they make huge amounts of profits and are recognized nationwide for producing the best coffee chains. Starbucks also has a big population loyal to its products because of good quality and brand. Besides, the firm runs other business as subsidiaries for example Ethos water and Teavana. As per SWOT analysis, the firm is resilient through diversification and global supply chain. Additionally, the interpretation of the SWOT analysis model identifies internal factors which raises concerns to business status. Starbucks Coffee's main weaknesses include relatively exaggerated prices, which is not afforded by the lower-middles groups of individuals who make the larger section of the society. A number of Starbucks products relate to generalized corporate standards which implies the products does not meet cultural demands of the society. Also,
ANALYSIS OF VARIOUS COMPONENT OF STARBUCKS3Starbucks Coffee's business does not have unique products to make a distinction with other products. The products have a specific resemblance. This part of the SWOT analysis, therefore shows that Starbucks should be more creative to curb such a weakness (Zanon et al., 2013, p. 207-233). Starbucks Coffee’s main opportunity is the opportunity to grow in further regions of the world where its product is not yet felt, like the Middle East and Africa. It owns an opportunity to stretch in regions with high economic growth like Asia. In addition, despite the fact that Starbucks already has a considerably diverse product mix, it enhances competitive advantage by diversifying more. Starbucks` products would be welcomed in supermarkets across the world, apparently a process that is on. In order to maximize the reputation, the firm can sell its own branded products in stores instead of their own (Laureate Custom 2013). Business collaborations can also strengthen Starbucks Coffee’s competitive position. Starbucks also has threats which require immediate actions for more growth and better production, as it is known in the world. The first threat is high competition, especially from cheaper alternative coffee industries, among them Dunkin’ Donuts and McDonald’s. The competitors equally do well even though they are not very popular as Starbucks. In the almost similar capacities, the competitors offer products that fit the same prices as Starbuck; which means nobody can predict any time the consumer is changing the taste. A specific market means Starbucks’ success rely on the love coffee with snacks in their lifestyles. (Morgan 2012, p. 115).Such a threat can disorganize the firm in whenever consumers shift. They are also adamant about realizing the effects of rises in coffee, tea, and dairy product prices.
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