Starbucks has one of the world’s strongest and most popular

Added on - 16 Sep 2019

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Starbucks has one of the world’s strongest and most popular brands. The company alsohas a growing population of loyal customers who prefer Starbucks based on quality and thebrand. In addition, the company has a global network of suppliers. The firm has also acquiredbusinesses as subsidiaries, such as Ethos Water, Seattle’s Best Coffee, and Teavana. This part ofthe SWOT analysis shows that Starbucks is resilient through diversification and a global supplychain.For the weaknesses, the relatively higher prices of Starbucks products make them lessaccessible to the large population of lower-middle class and lower class consumers. MostStarbucks products are also based on generalized corporate standards that make the products lessaligned in terms of products and café ambiance. This part of the SWOT analysis shows thatStarbucks must innovate to overcome its weaknesses, especially the imitability of products.Starbucks has the opportunity to expand in the Middle East and Africa, where the firmcurrently has minimal presence. The company also has the opportunity to expand in Asia, whereeconomic growth rates are high. In addition, even though Starbucks already has a considerablydiverse product mix, further diversification can help improve its competitive advantage.Partnerships and alliances can also strengthen Starbucks Coffee’s competitive position. This partof the SWOT analysis shows that Starbucks has major opportunities for global growth.For the threats, low-cost coffee from firms like McDonald’s and Dunkin’ Donutseffectively compete against the more pricey Starbucks products. Also, other companies canimitate the business. Many competitors have already imitated Starbucks and succeeded, such asStars and Bucks, a coffeehouse in the Palestinian Territories. There is also a growing socialmovement supporting independent coffeehouses and opposing large coffeehouse chains likeStarbucks. This part of the SWOT analysis shows that Starbucks must ensure competitiveadvantage amid potential negative effects of the identified threats, especially imitation andcompetition.Over the past few years, Starbucks has been conducting market research in a veryinteresting way. In 2010, Starbucks created a website called “My Starbucks Idea,” whereconsumers have the opportunity to share their thoughts on what the company can improve upon
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