Situation Analysis : Starbucks Corporation Essay

Situation Analysis : Starbucks Corporation Essay

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Situation Analysis Assignment: Starbucks
Starbucks Corporation is the world’s leading retailer of specialty coffee beverages and accompanying confectionery items. Starbucks was established in 1971 in Seattle by Jerry Baldwin, Zev Siegal and Gordon Bowker. Currently, Starbucks has over 21,000 stores and operates in more than 63 countries. The company’s mission is to offer an opportunity for people to enjoy a good cup of coffee and engage in a good conversation. The following situational analysis provides a detailed look at the current business situation of Starbucks by providing an in-depth analysis of the company’s current product, market, opportunities, and challenges.
Current products
The product portfolio of Starbucks falls into four key categories: beverages, packaged and single-serve coffee, confectionery and coffee-making equipment. Beverages include non-coffee blended drinks like Tazo Tea, Viviano Smoothies and Ethos Water. The company’s coffee products come in different forms such as fresh brewed coffee, hot and iced espresso beverages. The coffee comes in the form of dark roast, blonde roast, medium roast and flavored roast. The company’s confectionary portfolio consists of baked pastries, sandwiches, premium ice cream, oatmeal yoghurt, fruit cups and salads. Conversely, coffee making equipment includes: coffee grinders, coffee brewers and espresso machines. The newest product portfolio of Starbucks includes music, books, packaged goods and gift items (Latif, Hafiza, Gulzar, Syeda, & Syeda, 2014).
The best performing product category is beverages while the single-serve category has recorded the highest growth in the past few years. The single-serve packaged category has helped to offset the decreasing coffee sales and r...


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...s and do assignments. Besides, the retail stores have Wi-Fi access and good music to attract and keep the loyalty of the young adults. These groups of customers are also attracted by the customer service and highly knowledgeable employees who educate customers about Starbucks’ products (Latif et al., 2014).
SWOT Analysis
The strengths, weaknesses, opportunities and threats in Starbucks’ environment can be summarized in the SWOT table below.
Table 1. SWOT
Internal factors External factors
Strengths
• Steady growth and revenue
• Operational efficiency
• Established brand
• Excellent financial position
Weaknesses
• Uneven international growth
• Extensive expansion Opportunities
Overseas expansion
• Growth of Asian markets
• New distribution channels
• Growth of consumer packaged goods
Threats
• Unstable world coffee prices
• Rising competition from big and small firms

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