Strategic Analysis of Starbucks : Assignment
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Added on 2020-03-23
Strategic Analysis of Starbucks : Assignment
Added on 2020-03-23
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RUNNING HEAD: Strategic AnalysisStrategic AnalysisStarbucks
Strategic Analysis1Table of ContentsExecutive summary...............................................................................................................................3Introduction:..........................................................................................................................................4Ansoff market development matrix:......................................................................................................4Market penetration...........................................................................................................................4Product Development........................................................................................................................5Market Development........................................................................................................................5Diversification....................................................................................................................................5PESTEL analysis...................................................................................................................................5Political factor....................................................................................................................................5Economic factor.................................................................................................................................5Social factor.......................................................................................................................................6Technological factor..........................................................................................................................6Environmental factor.........................................................................................................................6Legal factor........................................................................................................................................6Porter 5 force model:.............................................................................................................................6Competition rivalry:...........................................................................................................................6Threat of substitution......................................................................................................................7Bargaining power of Buyer................................................................................................................7Bargaining Power of suppliers...........................................................................................................7Threat of new entrants:.....................................................................................................................8Life cycle of Starbucks..........................................................................................................................8Introduction phase............................................................................................................................8Growth phase....................................................................................................................................8Maturity phase..................................................................................................................................9Decline phase....................................................................................................................................9Value chain analysis..............................................................................................................................9Primary activities...............................................................................................................................9Support activity...............................................................................................................................10SWOT analysis....................................................................................................................................11Strength:..........................................................................................................................................11Weakness........................................................................................................................................11
Strategic Analysis2Opportunity.....................................................................................................................................12Threats.............................................................................................................................................12Recommendation.................................................................................................................................12References...........................................................................................................................................14Appendix.............................................................................................................................................17Ansoff market development matrix.................................................................................................17Pestle analysis..................................................................................................................................17Porter 5 Force Model.......................................................................................................................18Value chain analysis.........................................................................................................................19Swot analysis...................................................................................................................................20
Strategic Analysis3Executive summaryIn the report the strategic analysis of Starbucks is done. The main purpose of the assignment is to develop awareness and understanding of the strategies used in the organisation.The various types of strategic analysis done help in finding out the strengths and opportunities Starbucks has to compete with its competitors. The analysis used are Ansoff, PESTEL, valuechain, life cycle and porter 5 force to find out the various advantages, resources and Capability Company is possessing. In last SWOT is done to analyse the internal structure of Starbucks to find out advantages and opportunities it possess against the competitors in market.The alternative approaches to strategy has been discussed to choose the particular course of action. It is recommended after the whole analysis that Starbucks should limit its opening of stores through licensing so that the company could enhance its goodwill in the market. Also, the value of the products should be increased so that the risk of recued customer base in different geographical markets can be dealt effectively.
Strategic Analysis4Introduction:Starbucks Corporation is the successful retailer, and advertiser of privilege to fame coffee in the world. Starbucks additionally built up image for handling its workforces well. Their cafes are many a times meet point for the friends and office meetings. The Starbucks provide high quality product which attracts the customers the most. Moreover company also make customers special events special by organising parties for them.Starbucks has a good position in the industry of beverages and coffee chains. As compared tothe competitors, the company has shown an increase in the revenue by 2% in 2017 (CSI market, 2017). According to Geereddy (2013), the major competitors of the company are McDonalds, Costa Coffee, Dunkin brands and more. The main challenges for the brand include the low cost products by competitive brands, variety of food by the competitors, rising prices of coffee beans and more. The investors of the company are confident about the brand because of its good performance in the industry. Its earnings are better than the competitors and the boost in the stock price shows that the company still has the capability to perform even better.The report initiates with the discussion of Ansoff matrix and then the other analytical tools are used to analyse the strategies of the company. These tools include SWOT analysis, PESTEL analysis, value chain of starbucks, Porters five forces model and Ansoff Matrix.Ansoff market development matrix:Market penetration –It is increasing revenues of current products in present markets.Starbucks started initially the writing names strategy of clients on the cups of coffee.
Strategic Analysis5The reason behind this strategy was to increase sale and value amongst market for Starbucks products (David, 2011). They are continuallyrefining products and services serving new coffee essenceswhich gives consumer variety of selection at the time of ordering. Their USP, that serves the quality, develops the customerfaithfulnessover the brand to enhance. Moreover Starbucks has a continuousrequest from the customers to develop more products.Product Development–It targets to growdeals by introducingnew and latest products into aprevailing market. Some innovative products that Starbucks is providing are: breakfast and bakeryfoodstuffs. According to Darroch,(2014) Starbucks has establishedstores in all part of the world. Market Development –The market development explainsrising sales by introduction ofpresent products into freshmarketplaces. Starbucks is doing this by taking coffee shops all over the world. These products are generally founded on the nation’s values and demand, which are originally vary form Starbuck’s present products.Diversification –It definesintroducing new items produced by any company in market which is not targeted till now. By being frequently endeavouring to enter new regions and providingitems, is additionally a way through which Starbucks is extending its market operations (Haskova, 2015). PESTEL analysis:Political factor: The primary political issue evolves is around obtaining the raw resources. Forthis reason, the Starbucks needs to follow to community and ecological norms. It also gives significance to every country political environment before entering and moreover it adheres to fair practices of trade only (Yüksel, 2012). The political factors also effect the purchasing of raw material from other countries, as it needs to have information regarding laws and regulations of country.
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