Starbucks Swot Analysis Essay

1203 Words5 Pages
With many other players in the ready to drink coffee arena, Starbucks is able to utilize the strength of their strong brand recognition which allows the customers' to recognize their beverage options instantly by their logo alone. While other companies that offer on-the-go coffee options have logos Starbucks is probably the most recognizable. Starbucks is seen as being a step above other coffee retailers and this is part of their selling point. Many repeat customers will grab for the Starbucks branded logo that they know over another brand which displays the strength their brand has over the competition. An asset Starbucks possess is a large network of partnerships with other companies such as grocery stores, universities, hotels,
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The firm has the first mover advantage on ready to drink coffee beverages. Starbucks was the innovator and was the only offering until recently. Other competitors are beginning to enter the market and will have to provide a reason for the consumer to switch from what they know and enjoy already. This may be the biggest advantage for Starbucks as humans are creatures of habit and tend to stick to what they know and enjoy. Customer loyalty induces the purchaser to stick with the Starbucks brand. Many loyal consumers pick up the RTD coffee at the grocery store in the multi-pack offering. They then keep this purchase in their fridge for when they are running late to work and don’t have time to stop by a store. They can still have their coffee fix without stopping on the way or waiting for the coffee to brew at their home. Lastly, Starbucks has variety of ready to drink options compared to its competitors. The Starbucks website lists fifty five options to choose from. This wide selection has something for all consumers. While all options may not be available at grocery stores there is likely to be a more numerous selection than other brands which will draw in the consumer to find a beverage…show more content…
Product recalls such as drinking straws, nut allergen in food, glass pitchers that break, and lead in mugs have resulted in consumers having a poor perception of the firm (*Marketline). Other firms likely have recalls as well but not as hazardous and therefore not as publicized. This damages the company’s image and can deter consumers from purchasing their products including the ready to drink products. Another drawback Starbucks encounters is their price. Typically their offerings are more expensive than rival coffee offerings which may deter the price conscious customer. This makes the competitors viable replacements. The company has to walk the line between affordability and high end image while trying to appeal to the market. This leads into another issue the firm encounters which is exclusion due to high class image. The perception of a fancy drink retailer may prevent an “average joe” from purchasing a RTD beverage. In a male dominated manual labor occupation, the consumer may be hesitant to purchase a Starbucks RTD beverage over another brand for worry his coworkers might hassle him. These customers may seek an alternative that simple and unassuming. Additionally, Starbucks may rely on new and different innovative options in the RTD too much. The cost to produce the multitude of products is high. Shutting down and switching products in an assembly line is time with no output so
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