Marketing Strengths in IKEA PDF

University
Marketing 301
Name

Table of Contents
Part 1 2
Question 1 2
Marketing Strengths 3
Marketing Weakness 3
Strategy 3
Question 2 3
Question 3 4
Question 7 4
Question 8 6
Part 2 9
1. SWOT Analysis 9
2. Internal and External Factors 9
3. Ways in which IKEA has Managed to Minimize Threats 9
4. Usage of Information in SWOT Analysis 10
5. SWOT Analysis of Starbucks 10
Strengths: 10
Weaknesses: 11
Opportunities: 11
Threats: 11
References 12
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Part 1
Question 1
The organization that has been chosen in this context is Starbucks. Starbucks is one of the most
recognizable and popular brand names in the world because it is the world’s largest coffeehouse
chain having branches all over the world. The organization sustains its reputation through a
sturdy marketing strategy that focuses on product quality and customer service.
Marketing Strengths
● The major strength of Starbucks is the quality of its products. It uses high quality raw
materials in order to produce the best tasting coffee in the market.
● The cafes are located in prime and populous locations, which can be easily accessed by
consumers. Apart from that, Starbucks also maintains an aesthetic ambiance inside the
cafes so that the customers can relax while they have the coffee (Haskova, 2015).
Marketing Weakness
● The prices of its products exceed the prevailing rates in the market. Therefore, there shall
be a lot of customers who shall pay a lesser price for the coffee they can get from local
cafes or other competitors (Gelbrich, Roschk and Gafeeva, 2016).
● Starbucks specializes on a product, which can be easily imitated, and therefore, there can
be a lot of substitutes available in the market at cheaper prices.
Strategy
Starbucks’ strategy focuses on quality and customer service that shall be instrumental in securing
the customers loyalty. It has expanded into Asian markets in order to operate in the emerging
consumerist economies. However, there are certain factors that can seriously put Starbucks in a
disadvantageous position like the availability of substitutes.
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Question 2
Starbucks has positioned itself in the market as a premium coffee brand that offers the best
quality coffee to the customers. It ensures that the quality of its coffee is superior the ones
available in the market. Therefore, customers shall be more likely to have their coffee from
Starbucks. Coupled with the high quality of its products Starbucks also boasts of an excellent
store environment, which makes the cafe-going experience of the customers truly relaxing and
enjoyable. It can be observed that there can be innumerable coffee shops in a certain location but
none can offer the value proposition that Starbucks is offering (Harrington, Ottenbacher, and
Fauser, 2017).
However, to maintain a good public image Starbucks is also very stringent about its ethical
standards. Apart from offering value to its customers, it helps its employees in various ways like
providing for their employees fees for education (Marques, Camillo and Holt, 2015). Therefore,
Starbucks’ social responsibility forms an integral part of its marketing strategy. This integrative
approach helps the brand to out-compete other brands selling similar products.
Question 3
Starbucks seeks to maintain a synchronous relationship between its marketing objectives and
corporate objectives. This implies that the marketing strategy is devised in such a manner that it
aids in the fulfillment of the long term corporate goals. Starbucks has a glorious corporate
mission, which is to “to inspire and nurture the human spirit - one person, one cup, one
neighborhood at a time” (Real and Percell, 2018). Therefore, Starbucks does not merely aim at
earning profits out of selling coffee. Rather, it seeks to imprint a lasting effect on the planet
through carrying out business. Therefore, apart from ensuring its standards of product quality, it
also indulges in various social activities for the benefits of employees and society. This helps to
increase the reputation of the brand as one, which seeks to promote the betterment of society.
Starbucks also strives to operate in a transparent and humane manner while interacting with
customers, employees and suppliers alike. It also actively invests in community building
programs as a gesture to acknowledge the gratitude that it has for customers who let it earn so
much profits (Ottman, 2017).
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