English and Literature
Submitted By hong1989
Starbucks SWOT Analysis
o It is a global coffee brand built upon a reputation for fine products and services o It has almost 17,000 stores in 49 countries. o The organization has strong ethical values, commitment to the environment, and community activists.
o The organization has a strong presence in the United States of America with more than three quarters of its cafes located in the domestic market. In order to reduce business risk, expansion is needed. o Starbucks has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may falter over time, and product acceptance will come to a halt eventually slowing growth.
o The company has the opportunity to expand its global operations. New markets for coffee such as India and the Pacific Rim nations are beginning to emerge. o Co-branding with other manufacturers of food and drink, and brand franchising to manufacturers of other goods and services both have potential.
o Starbucks' success has lead to the market entry of many competitors and copycat brands that could pose potential threats. How they combat these threats will determine their future. o Starbucks is exposed to rises in the cost of coffee and dairy products.
Starbucks is a large company with a competitive advantage that is shrinking because of its huge success. This is because Starbucks model has been copied successfully by its competitors and this poses a serious threat to the company. If Starbucks cannot retain its differentiator strategy, it is doomed to fall out of popularity, as it would end up being a store that is selling nothing more than a cup of coffee.
With majority of its stores concentrated in United States, Starbucks is also limiting its growth and exposing itself to risk. Any negative changes in the domestic…...