Strength, Weakness And Swot Analysis: A SWOT Analysis Of Starbucks
analytical Essay
1941 words
Starbucks
Nicole Marx
American InterContinental University
Abstract
When the word coffee is said, many times the first thing that pops into a person’s head is Starbucks. Starbucks has become a household name and has been in business for over 40 years. They are constantly trying to get into new opportunities to branch out further into the marketplace as to reach more potential customers.
Starbucks
A person can’t go anywhere today without seeing Starbucks. There are coffee stores all over the world, Starbucks inside Target’s and military installations, to Frappuccino’s and teas sold in grocery stores and gas stations.
History
Starbucks has come a long ways since their first store opened in 1971 in Seattle. By 1988 Starbucks
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In this essay, the author
- Explains that starbucks has become a household name and has been in business for over 40 years. they are constantly trying to get into new opportunities to reach more potential customers.
- Explains that one can't go anywhere today without seeing starbucks. there are coffee stores all over the world, starbucks inside target's and military installations, to frappuccino’s, and teas sold in grocery stores and gas stations.
- Explains that hawley, j. (2015), who are starbucks' main competitors? (sbux).
- Opines that starbucks coffee is getting pricier today. it is available at http://web.b.ebscohost.com.
- Explains that starbucks has come a long way since their first store opened in 1971 in seattle. by 1988, they had grown to 33 stores and offered full health benefits to their eligible full- and part-time employees.
- Explains that starbucks has built strong customer connections through value-added services and leveraging technology to build a vigorous distribution channel strategy.
- Analyzes the commotion against starbucks and the rise in their prices of coffee, stating that they have been evaluating based on a product by product basis to balance out their needs while remaining to provide value to their faithful customers.
By using a SWOT analysis Starbucks can see where they are doing well, and where they could be improving. SWOT stands for Strength, Weakness, Opportunity, and Threat. (Marketline, 2016).
Starbucks has grown so fast in 40 years it is easy to see the things that they are doing right. One of the strengths that Starbucks has is they have built strong customer connections through value-added services. Looking deeper into this, starbucks prides themselves on retaining their current customers and how they are able to attract new ones. They sell world-renowned coffee in so many flavors that meet many peoples demands. They have been a company that has focused on meeting their customers demands while offering other services other than coffee. (Marketline, 2016). One of the many things that Starbucks has added to their shops is free ad unlimited Wi-Fi in the US, Canada and some of their international markets. They also have branched out with their up-selling merchandise to include apparel and accessories. They also started in October of 2015 a pilot project called the “Green Apron Delivery” at the Empire State Building. This serviced allowed workers at the empire state building to order certain beverages and food and it would be delivered within 30 minutes. (Marketline,
Related
- explanatory
- opinionated
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- Case Study: Target Market For Starbucksexplanatory essayStarbucks primary business is that of selling high premium coffee. They have been able to cater a specific product to a specific demographic. Specialization allows for the Starbucks company to deliver great quality and continue to maintain their customer base. Although there is a great amount of coffee flavors the coffee bean is still the constant ingredient in the great tasting coffee.
In this essay, the author
- Describes a useful aid for organizing information utilizing its strengths, weaknesses, opportunities, and threats.
- Explains that product recalls have hurt the starbucks brand as recently as 2015. specialization is a strength, but diversification and marketing products are weakness.
- Explains that product diversification has allowed starbucks to repackage their products and distribute it as a home product. the opportunity for continued expansion is present.
- Explains miller, r. k., food and beverage market research handbook. coffee shops.
- Explains william d. perreault, j. j, essential of marketing, a marketing strategy planning approach.
- Explains that starbucks didn't have a marketing plan in place at its inception. the company began selling coffee beans to espresso bars and upscale restaurants in 1982.
- Explains that starbucks' primary business is that of selling high-premium coffee. specialization allows them to deliver great quality and maintain their customer base. involving technology with their market structure.
- Opines that a marketing team along with data and analytics is essential to comprising the new product.
903 wordsRead More - Starbucks SWOT Analysisopinionated essayStarbucks-Via 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).
In this essay, the author
- Explains how starbucks was inspired by the book and movie about moby dick. howard schultz introduced the new italian coffee bean and italian style of coffee drinking.
- Opines that starbucks is taking a route that is causing the brand to lose its well-known image of friendly coffee house.
- Explains that starbucks refocused its attention on coffee in 2009, and introduced via instant coffee to steal back the market that was once theirs from the competitors such as panera bread.
- Explains that branding a new product is not as easy as placing it on the shelves and hope for the consumers to buy it. a strong marketing team is required for affective branding, as they understand the issues while doing so.
- Opines that starbucks has done a good job for packaging their instant coffee.
- Opines that starbucks must increase its advertising budget and increase the use of the media to counter the said problems.
- Explains that the key issue starbucks via faces is the negative image already engraved in consumer’s mind by other brands of instant coffee.
- Explains that there are many solutions to brand via now that the key issues have been identified. the company must try to lower the price by cutting unnecessary overheads such as excessive advertisements.
- Explains that starbucks has done a great job with the current packaging, but it's flawed. the most effective packaging is the one that advertises the product until the end of its consumption.
- Recommends a few starbucks via cups with each package sold to keep the overhead cost moderately low. they also recommend giving customers the option to purchase additional cups for $0.10.
- Explains that via brand will be starbucks minus the baristas-and the brewing.
- Explains starbucks' mission statement, which can be found at http://www.starbucks.com/about-us/company-information/mission-statement.
1431 wordsRead More - Starbucks Business Communication Practicesanalytical essayThe structure of Starbucks business communication is exceptional. Rather you are in their store buying a Caramel Frappuccino®, visiting their website or watching one of their advertisements on television; as the consumer, the message is loud and clear. Pick up any newspaper and you are likely to find an article about the coffee giant. Starbucks pledges a commitment to their over 172,000 partners (employees) and the community. “We realize our people are the cornerstone of our success, and we know that their ideas, commitment and connection to our customers are truly the essential elements in the Starbucks Experience” (Starbucks, 2008).
In this essay, the author
- Opines that starbucks and h2o africa join forces to help alleviate the world water crisis.
- Explains that starbucks coffee, tea and spices, founded in 1971 at seattle's pike place market, has been "brewing up" its famous blends in over 43 countries, including the united states.
- Explains that starbucks' first national tv spots are heavy on kindness, a little light on product message.
- Analyzes how starbucks communicates its layoffs. howard schultz transformation agenda communication #1.
1843 wordsRead More - Starbucksexplanatory essayStarbucks Corporation is a clearly thriving, popular, and cosmopolitan business. It is widely known throughout the world, and only continues to grow. Being the most well known coffee corporation in the world, Starbucks is a very influential part of the lives of Americans today.
In this essay, the author
- Explains that they apply the highest standards of excellence to the purchasing, roasting, and fresh delivery of their coffee.
- Explains that starbucks was founded by jerry baldwin, gordon bowker, and zev siegl on march 30, 1971.
- Explains that starbucks' mission statement is to inspire and nurture the human spirit — conducting their business ethically and striving to do the right thing are a vital part of the company.
- Explains how howard schultz resigned from the ceo position at starbucks in 2000. he appointed orio smith to this position and to the position of president of the company.
- Explains that starbucks coffee was removed from the company's logo in 2011, leaving only the picture of the mermaid. schultz struck a deal with green mountain coffee roasters to distribute starbucks coffees and teas for keurig single-serving systems.
- Explains that there are more sizes of coffee than those listed on the menu. the trenta size at starbucks is larger than the capacity of the average human's stomach at 916 milliliters.
1995 wordsRead More - Schultz's Case Study: A Brief Background Of Starbucksanalytical essayStarbucks is a worldwide company, known for is delicious brews of coffee and seasonal varieties of tasty drinks for any occasion. Starbucks opened with two main goals, sharing great coffee with friends and to help make the world a little better. It originated in the historic Pike Place Market of Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker. The creation of Starbucks’ name came from the seafaring tradition of early coffee traders and the romance evoked from Moby Dick. At the time, this individual shop specialized in the towering quality of coffee over competitors and other brewing services enabling its growth to becoming the largest coffee chain in Washington with numerous locations. In the early 1980s, the current CEO Schultz saw an opportunity for growth in the niche market. After a trip to Italy he brought back the idea of a café style environment of leisure and social meetings to the United States we now see in Starbucks locations today. Schultz ultimately left Starbucks to open his own coffee shop, Il Giornale which turned out to be a tremendous success. Fast forward a year later, Schultz got wind that Starbucks was going to sell all their components of Starbucks including their stores and factories, he immediately acquired the funds to buy Starbucks and linked both operations. Within five years he was able to open more than 125 stores starting in New England, Boston, Chicago, and gradually entered California. He wanted Starbucks to be a franchise system based on the mission of telling the truth and emphasize the quality,
In this essay, the author
- Explains that starbucks originated in the historic pike place market of seattle in 1971 by jerry baldwin, zev siegl, and gordon bowker.
- Explains that starbucks' success is due to their ability to address internal and external factors. the certs framework helps indicate the most important influential factors and characteristics in the macro-environment.
- Explains that starbucks has 26.48% of the total market share, making it the industry leader over mcdonalds, peets and other coffee beverage producers. there is a moderate threat of new entrants into the existing market place.
- Explains that economic forces are extremely important in order to improve profitability, future business growth, and increase market place. starbucks has laid out the coffee-buying guidelines, while being social and environmentally responsible.
- Explains that starbucks faced declining sales due to economic downturn and consumers shifted their tastes towards cheaper, more affordable products.
- Analyzes how the increase in technology in today's generation has positively affected starbucks' customer satisfaction levels. the "starbucks app" allows customers to order specialized drinks, create new drinks or accumulate points towards a free drink.
- Explains that starbucks uses the marketing mix to develop business growth and consumer engagement. they offer a variety of products to capture more of the market and customer needs while attracting new customer base.
- Recommends that starbucks acknowledge the increase of home usage of coffee makers by creating more home brew products or lines such as roasting machines.
- Cites zacks investment research's starbucks corporation (sbux) forecast earnings growth.
1431 wordsRead More - Starbucks Segment Analysis Essayexplanatory essayIn the future, Starbucks necessity reappearance to their essential advertising strategy and attention to their customer's separate requirements and needs. Starbucks should endure increasing their creation, collection and faithfully follow new technological trends as their goal population has this
In this essay, the author
- Explains that starbucks is a worldwide coffee house series founded in the us and more than twenty thousand stores in 62 countries. the exclusive vending idea benefits starbucks distinguish their products and facilitate their spread.
- Opines that starbucks lost "some of its magic" in 2010, when it released numerous innovative stores, and the separate facility was not so individual anymore. starbucks must reappearance to their essential advertising strategy and attention to customer's separate requirements and needs.
- Explains that technology is universal and allows the presentation through all the tasks whether it is economics, advertising, stream chain. starbucks has completed very respectable use of information technology all over the company to ambition performance.
- Explains that starbucks' demographic segmentation is between 25 and 40 years of age with high incomes, the second target group is 18 to 24 years and belongs to wealthier relatives. starbucks is located between mass marketing and segment marketing.
- Opines that starbuck attracts them because of its policies and strategies how company handles technology factors and customer satisfaction, and digital creativities like the outline of a new faithfulness program.
979 wordsRead More - Starbucksopinionated essayStarbucks is currently the industry leader in specialty coffee. They purchased more high quality coffee beans than anyone else in the world and keep in good standings with the producers to ensure they get the best beans. Getting the best beans is only the first part, Starbucks also has a “closed loop system” that protects the beans from oxygen immediately after roasting to the time of packaging. They did this through their invention of a one-way valve which let the natural gasses escape but keeping oxygen out. This gave them the unique ability to ensure freshness and extended the shelf life to 26 weeks. Starbucks isn’t only about the coffee, it’s also about a place where people can escape to enjoy music, reflect, read, or just chat. It is a total coffee experience. The retail outlet has been responsible for much of Starbucks growth and has contributed substantially to their brand equity.
In this essay, the author
- Explains that shultz and starbucks have to decide how to react to the opportunities that are being made available because of their rapid growth. a strategic growth plan has to be made in the near future.
- Explains that starbucks is the industry leader in specialty coffee and has a closed loop system that protects the beans from oxygen immediately after roasting to the time of packaging.
- Analyzes how starbucks' supply chain operations haven't caused any problems yet, but they have yet to come up with a long-term solution for such possible problems.
- Explains that starbucks has many opportunities of which it can take advantage, including a joint venture with mcdonald's, and the bottled frappuccino product that pepsi and starbucks have created.
- Explains that starbucks must be aware of the threats of competing in a particular industry, such as political unrest or currency changes in the counties from which it acquires its beans.
- Opines that starbucks could create a special brand of coffee just for mcdonalds that doesn't use the starbucks name.
- Opines that the second alternative is to push the frappuccino product that both pepsi and starbucks created into national distribution.
- Opines that franchising coffee carts would spark lots of interest and provide a fast move into many markets.
- Proposes a vertical and horizontal integration for starbucks to gain more control over their coffee production.
- Recommends that starbucks implement their strategy correctly, such as getting a deal with mcdonalds without using the starbucks name, and selling franchise right for coffee carts.
1328 wordsRead More - Mission & Strategy: Starbucks's Mission And Strategyexplanatory essayStarbucks started out in a “single store in Seattle’s historic Pike Place Market” (Starbucks, 2017, p. 2). Starbucks only offered fresh roasted whole bean coffees and dark roasted in small bags. In 1981, Howard Schultz stepped into his first Starbucks and had his first drink (Starbucks, 2017). Howard ended up becoming the chairman and CEO for Starbucks. From the beginning you could tell that Starbucks was going to be different from the rest of the coffee shops in the world. From the one store they had open in 1981, now in 2017 Starbucks has expanded to 27,339 stores around the world (Statista, 2017, p. 2). The name of Starbucks came from coffee loving Herman Melville’s Moby Dick because they though the name “evoked the romance of the high seas and the seafaring tradition of early coffee” (Virginia’s Community College, 2017). This company has grown from a little coffee shop to a big
In this essay, the author
- Explains that starbucks started out as a single store in seattle's historic pike place market. howard schultz became the chairman and ceo of starbucks in 1981.
- Explains that starbucks' mission is to inspire and nurture the human spirit — one person, one cup, and one neighborhood at a time.
- Explains the importance of delivering our very best in all we do, holding ourselves accountable for results.
- Explains that corporate expects every one of their works to follow these 6 core principles and if they do, they think their customers will be happier.
- Explains the fixed-charge coverage ratio, debt/equity ratio and operating margin ratio.
- Explains that starbucks has many strengths, including a strong brand name and an extensive global supply chain.
- Explains that starbucks' products are sold at a higher price than other coffee chains. starbuck's major revenue comes from business in america.
- Opines that starbucks should expand its business into asia and africa to increase sales and increase the amount of consumer products available at local stores, such as coffee beans and keurig cups.
- Explains that one of the greatest threats to starbuck's business is the competition from other businesses that sell coffee for a more affordable price.
- Opines that starbucks needs to focus on expanding globally. africa has the most potential for growth and expansion.
- Opines that starbucks has a lot of success and is one of the world’s leading coffee makers and sellers, but there is room to grow with their industry and strive to be the best coffee maker.
- Cites baertlein, l., starbucks curbs 2017 revenue forecast after u.s. store visits drop.
1312 wordsRead More - Target Market Analysis of Starbucksexplanatory essayStarbucks Company was established in 1971 with their first store in Western Avenue from that same year to 1976. They started as retailers of ground coffee tea and spices with a single in Seattle’s historic Pike Place Market. Starbucks is named after the first mate in Herman Melville’s Moby Dick and their logo is inspired by the sea-featuring a twin-tailed siren from Greek mythology. Starbucks had always wanted to inspire the human spirit. They believe in serving the best coffee by growing the coffee under quality standards. Starbucks believes rendering good services to customers is very significant to the success of the company. From just a narrow storefront, Starbucks now has more than 20,000 stores in over 60 countries and they offer some of the world’s finest fresh-roasted whole bean coffees. Their coffee houses have become a beacon for coffee lovers everywhere. Starbucks believe that they can elevate their customers, partners, suppliers and neighbours to create positive change. They call their corporate offices “a support centre” for some reasons. They try to make everything they do there to support their retail store partners and make an impact on the communities they serve. They have a research and development team of over 200 people which are responsible for the science behind their great products. They are the innovators of delicious beverages and brewing equipments. They drive the innovations, conduct the research and test products. They have a public affairs, communications and community team of over 50 people who promotes and protects the company’s reputation all around the world. They also have a partner resources team of over 500 people that help their partners all around the world become their very best...
In this essay, the author
- Explains that starbucks was established in 1971 with their first store in western avenue from that same year to 1976. they believe in serving the best coffee by growing the coffee under quality standards.
- Explains that starbucks works with over 18000 stores worldwide to ensure supplies are always available to their customers. starbucks started "grounds for your garden" in 1999 to make their business more environmentally friendly.
- Explains that starbucks target market is mainly adults between the ages of 25-40, these customers account for almost half (49%) of starbucks total business.
- Explains that starbucks target market ranges from the ages of 18-40, both male and female. the income of these people depends on the life-stage individuals are at right now.
- Explains the starbucks distribution channel, which consists of getting the best coffee beans from the farm and then brewing it in factories. starbucks also works hand in hand with the company that produces their mugs and cups.
- Explains that market positioning is a way to put in perception which you want to the mind of the customers.
- Explains the products offered at star bucks include coffee, tea, cold drinks, buns, sand witches and plenty of other items.
- Describes the things that need to be considered before the prices of products are generated.
- Explains that each individual has his/her own wants, so they decided to price each cup of coffee according to the ingredients chosen by the customer and the total is then given out.
- Explains that promotion of products is a must for it to sell. proper advertising, proper marketing, and creating buying incentives are needed for proper promotion.
- Explains that a coffee shop needs to be located in an area that attracts large numbers of customers, such as shopping malls, schools, offices, and drive-through services.
- Explains that before starbuck?s existed, a consumer would buy canned supermarket coffee as the standard means of getting coffee.
- Explains that starbucks is one of the most recognized brands in the market and their market share seems to grow every year.
- Explains that starbucks' products are pricy, which may be a weakness for the company because customers may choose cheaper alternatives. starbucks has to maintain their expected brand image.
- Opines that expanding into emerging markets would be a better advantage for starbucks. starbucks recently introduced an app called mobile pour, which would attract more customers.
- Opines that competition may be a threat to starbucks because other companies may come up with something that they lack and/or customers may prefer going to other coffee shops because of the price.
- Explains that the bcg matrix shows different products of starbucks, and according to the matrix one will be able to tell which product is highly demanded in the market and what isn't.
- Analyzes how starbucks has applied positioning to its market. target segmentation is the process used by organisations to target a précised category of customers with various needs, wants, and characteristics.
- Explains that starbucks gave themselves the position as a premium product in the coffee industry by producing and incorporating high standard, initiating innovative products and offering exceptional service. schultz was aware of the fact that coffee is extremely perishable item and practised high level of quality.
- Explains that starbucks catered really expensive products and it was in accordance with theory that the price which the customer gives to the seller for a particular quality, this price was evaluated as the quality of the product.
- Opines that starbucks should slow down the expansion process internationally and pay more attention to marketing new products and its brand name.
- Explains market segmentation, target market selection, and positioning. 2005. subudhi, r., 2014.
- Explains ken boyer's behind the scenes at starbucks supply chain operations itâ€tms plan, source, make & deliver. nithin geereddy.
2718 wordsRead More - Starbucks Reflection Paperexplanatory essayWhen I saw this discussion, I couldn’t help but think of Starbucks and the impact they’ve made throughout their 45 years of establishment. I worked with them for about 7 years and saw how unique they were from your everyday coffee and latte spots. A retail company with thousands of coffee shops in the US as well as in other countries, this particular retailer has been able to catch the eyes of all ages as well as locations throughout the world. For example, today college students utilize Starbucks locations to study rather than go to a nearby library. Starbucks is also known for its best coffee and espresso drinks (Latte or Frappuccino) and with one of its delicious espresso 's any student or just a person stopping in to enjoy its lounge area where there is free Wi-Fi is awesome! Starbucks lifecycle has made a 360 turn around and been revamped twice to accommodated the growing market. Customizing their brand to fit more in with everything and not just one thing. By doing this they’ve created multiple product lifecycles within their own lifecycle as a corporate company.
In this essay, the author
- Explains that starbucks is a retail company with thousands of coffee shops in the us as well as in other countries. starbucks lifecycle has been revamped twice to accommodate the growing market.
- Explains that starbucks' growth stage is one of the most important stages as it can drive the business.
- Opines that mature companies tend to engage in inorganic growth to fuel innovation, such as acquiring start-ups or middle-sized companies. not all products have been a home run for starbucks.
- Explains that starbucks uses risk management policies to hedge risk and pursue different financial aspects, such as interest rates, foreign currency, and commodities.
786 wordsRead More