Detailed Analysis of Various Components of Starbucks Coffee

This report provides a comprehensive analysis of Starbucks, the world's largest coffeehouse chain, focusing on its various components. It begins with a SWOT analysis, examining the company's strengths, such as its strong brand, premium products, and loyal customer base, as well as weaknesses like high prices and lack of product uniqueness. The analysis then explores opportunities for growth in new markets and through product diversification. Threats, including competition from cheaper alternatives and the impact of rising costs, are also discussed. Furthermore, the report delves into Starbucks' brand strategy, emphasizing its unique logo, global expansion, and efforts to gather customer feedback. It highlights the company's investment in appealing store designs and its use of social media and mobile marketing, including the Starbucks app and the integration of artificial intelligence to enhance customer engagement and drive sales.

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ANALYSIS OF VARIOUS COMPONENTS OF STARBUCKS
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Analysis of Various Component of Starbuck
As 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,

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Starbucks 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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The brand name of Starbucks has the power to persuade people to buy the product. Of
course, branding has been one of the key focus of Starbucks while strategizing in the recent
years. The firm has injected a lot of resources to create descent and appealing store to its
customers. Also merchandise and meals. Branding has been one of the pivotal elements of
Starbucks strategy over many years. The Starbucks Siren logo, falls among the most unique and
can be identified anywhere. The global expansion strategy spreads the product far across the
world which come basically brings a similar experience in consumers.
Evidently, the brand strategy focus towards getting feedback from the consumers, more
so in acquiring the kind of experience in the stores. This has been the foundation of the Starbucks
values and philosophy. In regions where the firm is convince it stores are likely to be the
attributing factors it invests in more appealing stores than usual. For example in United States,
stores are created out of designed containers. The interior parts are well decorated, with good
lighting, durable materials among other factors. In its international stores, the strategy localizes
some of the store elements but still staying true to the Starbucks experience.
An additional strategy which the company uses is to keep updated with the latest time
events particularly in the consumers. As a result, the firm has formed a website where people can
always live a comments, view or suggestion. Such a step give get ideas how to improve as well
involve the community in its activities; one major role of a business to the society (Morgan,
2012, p. 117). This is akin to the emerging methodology of “crowd-sourcing” in the field of
innovation. The brand is well covered in social media platforms and has gotten enough focus in
the past years. As the firm believes, the presence of its products in the media allows rooms for
better interaction with the customers and also remain visible. At least every day, people spend

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their time in the internet. The brand has pages in all the sites of socializing; Facebook, Twitter,
Instagram and Google plus. Starbucks partnered with Duracell Powermat to roll out wireless
charging in its UK stores, hence, an added advantage to the customer experience and bringing
digital innovation into its stores.
Finally, the brand heavily invests and has confidence in mobile marketing. It has
promoted the latest technology by creating an app. The Starbucks App makes it easier to pay for
products. So far close to thirteen million customers with the app installed and thousands using it.
Up to 9 million mobile paying customers and more than USD 6 billion loaded onto prepaid
Starbucks Cards in North America in 2016 alone (Zanon et al., 2013). Besides its success in
using technologies like QR codes, coupon downloads and virtual gift cards in its promotional
campaigns, Starbucks has leveraged on Artificial Intelligence. Its customers can now use voice
commands and a massaging interface via the mobile app. Therefore, there is an improved
customer engagement depicted in Starbucks Rewards member spend.

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References
Helms, M.M. & Dixon J. (2010) ‘Exploring SWOT Analysis: Where Are We Now? A Review
of Academic Research from the Last Decade’, Journal of Strategy and Management,
3(3), pp. 215-251.
Laureate Custom (2013) Business Management and Analysis. New York: McGraw-Hill
Morgan, N. A. (2012) ‘Marketing and Business Performance’, Academy of Marketing Science
Journal, 40(1), pp. 102-119.
Zanon C.J., Filho, G.A., Jabbour, C.J.C. and de Sousa Jabbour, A.B.L. (2013) ‘Alignment of
Operations Strategy: Exploring the Marketing Interface’, Industrial Management & Data
Systems, 113(2), pp. 207-233.