Case Analysis: Starbucks

Running head: CASE ANALYSIS: STARBUCKS 1
Case Analysis: Starbucks
Name
Institution

CASE ANALYSIS: STARBUCKS 2
Case Analysis: Starbucks
Starbucks Corporation’s SWOT Analysis
From the information given in the case study, it has been found out that Starbucks
Corporation has many strengths, weaknesses, opportunities and threats that have been shaping its
development.
Strengths
The case study reveals that the adoption of technology is one of the major strengths of the
company. It has embraced the use of automatic espressos which has, of course enabled it to
automate its service-delivery process. The other strength is that Starbucks has a strong supply
chain and a good brand in the market (Vanharanta, Kantola & Seikola, 2015). The kind of
collaboration that the company has established with its partners has made it to extend its
operations to different locations in different countries including the USA, Canada, just to
mention, but a few (Lemus, von Feigenblatt, Orta & Rivero, 2015).
Weaknesses
However, despite all these strengths, there are some weaknesses that the case scenario
reveals about this great coffee multinational. In the first place, Starbucks does not have a strong
marketing strategy. Its poor marketing initiatives have made it to damage its brand image. It has
failed to engage in useful activities such as product differentiation (Glowik, 2017). This has
hindered effective selling of the products.
Opportunities

CASE ANALYSIS: STARBUCKS 3
The case scenario revealed that Starbucks has some opportunities that it needs to explore
if at all it is concerned about its prosperity. First and foremost, the corporation has to take
advantage of the emerging markets and exploit them further. In addition, the corporation still has
opportunities in production (Mason, Cole & Goza, 2017). It can further diversify its products to
ensure that it meets the needs of different segments of the market. It should capture the youthful
generations by producing a special kind of product that can appeal to them. Lastly, the
corporation still has opportunities to embrace the application of modern technologies in its
production process.
Threats
Nonetheless, the corporation has some threats. These include stiff competition in the
market. The competition has been coming from other companies such as Dunkin Donuts, Peet’s
Coffee & Tea, and Caribou Coffee. These companies pose a stiff competition because they are
established brands which manufacture substitute products. They have been in operation for quite
some time, have certain attributes and strengths that make them to enjoy a competitive advantage
and claim a substantial share of the market.
For Starbucks to strategically-position itself and enjoy a competitive advantage over its
rivals in the market, it have a suitable service blue print. Although there is a stiff competition in
the market, the company should capitalize on all its strengths. At the same time, it should
overcome all its weaknesses and address the threats that make it challenging for it to penetrate te
market and accomplish its goals.
Starbucks Corporation’s PESTLE Analysis