Starbucks SWOT Analysis

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Synopsis:
Inspired by the book and the movie about Moby Dick, Starbucks first opened as a storefront in Pike Place Market in 1971. It wasn’t until 1984 when Howard Schultz joined the operation as a chairman, president, and chief executive officer, and introduced to Starbucks the new Italian breed of coffee bean and Italian style of coffee drinking; a style that refreshed the idea of socializing and interacting among people of all walks in times that corporate life style was winning over the family and friendly style of living. Such goal was established by officially making it company’s mission statement; “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks, n.d). After 43 years of business, Starbucks currently operates in 18,000 locations in sixty-two countries (Starbucks, n.d). The annual report released by the company for the year 2013 indicates a total sales/revenue of 14.89 billion dollars, which was 1.5 billion dollars made in 2012 (MarketWatch, 2014).
However, such success requires high maintenance. In fact, due to high competition and declining revenues, in year 2005, Starbucks introduced new products to their menu, which included pastries, sandwiches, and deserts. Such strategy helped the company regain its market power. Regrettably for the investors, such static fixture provides only a short-term relief in a highly volatile and competitive market. Mr. Schultz have expressed his concern that the company is taking a route that is causing the brand to lose its well known image of friendly coffee house (Seaford, et. al, 2012). The market that was once cornered by Starbucks has started to slip away from the grips of the company once McDonald’s, Dunkin Donuts,...

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...quest.com.proxy.davenport.edu/pqcentral/docview/208382294/2A876B37643D443EPQ/2?accountid=40195
Hall, J., & Schneider, J. (2011, April 1). April 2011. Harvard Business Review. Retrieved March 30, 2014, from http://hbr.org/2011/04/why-most-product-launches-fail/ar/1
Our Starbucks Mission Statement. (n.d.). Starbucks Coffee Company. Retrieved March 29, 2014, from http://www.starbucks.com/about-us/company-information/mission-statement
Seaford, B., Culp, R., & Brooks, B. (2012). STARBUCKS: MAINTAINING A CLEAR POSITION. Journal of the International Academy for Case Studies, 18(3), 39-57. Retrieved March 29, 2014, from http://search.proquest.com.proxy.davenport.edu/pqcentral/docview/1037815154/F93C2836F2E04403PQ/2?accountid=40195

Starbucks Corp.. (n.d.). SBUX Annual Income Statement. Retrieved March 29, 2014, from http://www.marketwatch.com/investing/stock/sbux/financials

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