Management Homework- How to do SWOT Analysis using Starbucks as Example?


SWOT Analysis of Starbucks

Strength     
Starbucks Corporation, a global coffee brand, has a solid financial foundation with earnings over six hundred million in year 2004 and this figure is expected to continue to grow. It is built upon a reputation for fine products and services with about 9000 cafes in almost 40 countries (Marketing Teacher 2012).
In year 2005, Starbucks was one of the Fortune Top 100 Companies in term of working condition and it is a respected employer who values its employees (Marketing Teacher 2012). It has a well-established and growing brand recognition with a strong brand image associated with quality coffee and excellent customer service (Starbucks 2012).
Starbucks is an industry market leader with their outlets being highly visible so as to attract customers as per our business management homework help service providers. Moreover, it has established good relationships with suppliers, valued and motivated employees, as well as customer base loyalty which give Starbucks a competitive advantage over their competitors (Scribd 2012).
Weakness
Despite its growing customer base, starbucks is facing intense competition. There are growing number of direct and indirect competitors such as TCC, Kopitiam, Koi Cafe and Gong Cha (Starbucks 2012). Moreover, Starbucks product pricing is higher than their competitors and a price reduction by their competitors might reduce Starbucks market shares (Scribd 2012).

Starbucks has a strong presence in the United States of America with more than three quarters of their cafes located in the home market. However, it is argued that they need to look for a portfolio of countries so as to spread their business risk (Marketing Teacher 2012).

Opportunities
Starbucks has the opportunity to expand its global operations and product offering in the emerging market such as India, China and the Pacific Rim nations (Marketing Teacher 2012). This allows them to increase their brand recognition and penetrate into new markets to capture bigger customer base globally.  
Co-branding with other manufacturers of food and drink, and brand franchising to manufacturers of other goods and services has further provided them with potential opportunities (Marketing Teacher 2012). Furthermore, backwards integration with food and drink manufacturers enables Starbucks to develop new products and services efficiently (Scribd 2012).

Threats
With consumer trends moving toward more healthy ways and away from caffeine, it threatens the existence of starbucks when the demand of their coffees decreases. Cultural and Political issues in foreign countries, away from their home country may surface due to the cultural distance and product perception.  Coffee price volatility in developing countries might also post a threat for them as it affects their profit as per our operations management homework help services.
Lastly, their home market is already saturated with little growth potential. In order to grow, Starbucks need to continuously diversify into new markets and at the same time, to develop new products and services in order to capture bigger market shares (Starbucks 2012).

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