* Eco‐friendly practices, for Starbucks is concerned with conserving energy, water, controlling climate change and recycling * Encourages commitment to environmental leadership of employees * The coffee cups are non-toxic and recyclable
Only coffee products…..
Somewhat expensive (debatable, opinionated)
-High operation costs
Expanding too quickly (leading to a disadvantage?)
* Decrease in original
* Waste was created when they changed their logo in 2011 placed on the 10% recyclable cups, leaving them to have to dispose of cups that had the old logo.
-Their rewards program has been successful, but there’s room for improvement on specials/promotions or coupons
Brand extension (room for more “non-coffee” products)
Could be offered as a menu coffee choice in restaurants (distribution)
Ability to appeal to a large market (coffee drinkers, hard working adults and students alike, people on the go, people who want a nice environment to drink coffee in, etc.)
* They are designing "green" inside their stores to incorporate furniture that is sustainable, cabinets built of 90% post-industrial material, tiles that are recyclable, paints containing low volatile organic chemicals and better efficiency lighting. Even the temperature inside stores is being regulated to conserve energy. * Companies that already have 100% recyclable cups/products (Starbucks plans to by 2015)
Many known competitors/rivals (Dunkin’ Donuts, Caribou Coffee, even McDonald’s, Panera, etc.)
A comparative analysis against competitors and customers’ expectations |
When you think of Seattle what images come to mind? A pristine mountain backdrop covered in hunter green conifers? A city landscape covered by rain clouds on the edge of the Pacific Ocean? Or an urban city saturated with over 500 Starbucks coffee shops? Starbucks, originally founded in Seattle in 1971, has become the world’s largest coffeehouse company in the world and is now synonymous with Seattle, Washington. They have built their business on the strengths of customer loyalty, market saturation and satisfying customer’s expectations but now their weakness of high price points is being strategically attacked by outside competitors.
Starbucks has built customer loyalty over the ages through service, attention to detail and innovation. Originally, Starbucks began as a small whole-bean roaster who served the customer by selling coffee for the home. Howard Schultz, then Director of Retail Operations and Marketing, saw the potential to take it from a company dabbling in the retail sector to its current state. Schultz bought out Starbucks and quickly began to expand its retail business but always kept sight of the customer. Schultz built the brand off of service and truly believed that “we aren’t in the coffee business, serving...
...SWOTAnalysis - StarbucksSWOTanalysis is a tool for auditing an organization and its environment. SWOTanalysis is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses, opportunities and threats.
Positive internal factor of Starbucks – Strengths (characteristics of the business or project team that give it an advantage over others)
Starbucks Corporation is a very profitable organization, earning in excess of $600 million in 2004.The company generated revenue of more than $5000 million in the same year.
Strong brand image associated with quality coffee and excellent customer service (“The Starbucks Experience”)
Store location is an important competitive factor and Starbucks has secured its presence in many of the most desirable corners of the planet.
Relationship with their workforce (e.g. employees treated as partners)
Wide variety of product offerings
Offers free Wi-Fi in stores and a comfortable space for its customers
Negative internal factor of Starbucks – Weaknesses (characteristics that place the team at a disadvantage relative to others)
Starbucks products are more expensive than those offered by the competition, and customers could easily switch to lower priced alternatives in times of economic...
...SWOTAnalysis: Starbucks External Environment: Opportunities: Company adopted many new initiatives throughout the years. Some of those include the replacement of the automatic espresso machines by a new machine called Mastrena. Mastrena is smaller than the current equipment and thus allows more efficiency; it also allows the barista to make direct eye contact with the customer. The company also acquired the Coffee Equipment Company, maker of Clover (brews coffee by the cup). Introduction of the Rewards Card, which is pre-loaded and gives customers more flexibility in the way they purchase Starbucks products. International expansion (form partnerships abroad for a quicker adaptation). Arrival of new products and services Stronger presence in supermarkets (increased exposure). Industry Environment: Pretty weak around the early 1980s but grew drastically between 1989 and 1999 (number of specialty coffee retailers grew from 585 to 12,000 and reached 24,000 the end of 2006). Threats: Competitors: Dunkin Donuts (vanilla spice coffee, Pumpkin Latte), McDonalds (McCafes, unsnobycoffee.com). Peet’s Coffee & Tea, Coffee Bean & Tea Leaf, Caribou Coffee Internal Environment: Strengths: Strong financial health (cash available for greater expansion, more involvement for social actions). Brand Name The company introduced...
When you think of a company that has been very successful what company comes to mind? In particular one chain that is available all over the world that has deemed to be very successful is Starbucks. In what was do you think they have strategized or planned to be as successful as they are today? One way a company can develop a plan for success is using a SWOTanalysis. “ASWOTanalysis is used to assist faculty in initiating meaningful change in a program and to use the data for program improvement” (Orr, 2013). In reference to the success of Starbucks we will take their opportunities in lock step with this analysis. This will help us see how well Starbucks performs and if it will continue to be a great company. To properly conduct a SWOTanalysis a general outline is shown below:
(Harvard College Consulting Group)
The first part of a SWOTanalysis we see is strength. Strength is an item every business wants to capitalize on and a business like Starbucks we know is one that definitely has strengths. If you were to go up to anyone and ask them if they know what are Starbucks is I am sure they would be able to tell you or at least say they have heard the name of the company. When it comes to coffee and...
The SWOTanalysis is a method used to evaluate a company on specific parts. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. The Strengths and Weaknesses are part of the internal evaluation. Opportunities, and Threats are part of the external evaluation. This means there is a part that is about what happens inside the company and a part about what happens outside the company.
After doing some research and the interview, it was time to brainstorm.
And this is the result:
* Wide range of original products
The products that Starbucks has are not for sale at other coffee companies. That is what makes them original. They are very innovative and they sell all sort of different coffees, juices, sandwiches, cookies, cakes and tea.
* High quality ingredients
Starbucks is known for their high quality ingredients. They think it is very important to have the perfect ingredients for their customers.
* Specialized staff
The Starbucks staff is specialized in their job. The baristas know exactly how to prepare the perfect beverage or sandwich for you. It is always nice to know that an employee knows what he is doing. Especially when it is about your food and beverages.
* Green image
The environment is getting more and more important nowadays. Everyone tries to contribute. Starbucks...
Sound financial records. Starbucks profitability has been rising for the past few years and is now 14%. The company also outmatches its nearest competitors with 24.54% return on investment and 29.16% return on equity.
No. 1 brand in coffeehouse segment, valued at $4 billion. Starbucks has a strong brand reputation associated with quality coffee and excellent customer service. Its brand is the most valuable brand in coffeehouse segment and is valued at $4 billion.
“Starbucks experience”. One of the strongest advantages Starbucks has is the experience it delivers to its customers with perfectly blended coffee, premium music, friendly staff and warm atmosphere, which results in incomparable customer service.
Largest coffeehouse chain in the world. The company operates around 20,000 coffeehouses in 60 countries, making it the largest coffeehouse chain in the world.
Employee management. The company offers its employees extensive range of benefits and a pay rate higher than offered by competitors.
Coffee beans price is the major influence over firm’s profits. Starbuck’s profitability and its coffee price are largely dependent on prices of coffee beans, which is a commodity and cannot be controlled by Starbucks. Due to hedge funds, weather conditions and many other factors, Starbucks cannot estimate the price of tis coffee and company’s profitability.
...SWOTAnalysisSWOTanalysis involves looking at the internal strengths and weaknesses of a business and external opportunities and threats.
In other word, it is used to analyze the possible internal advantages and problems that a business has, and to determines the external factors of the business which may affect its strategy.
The purpose of a SWOTanalysis is to conduct a general and quick examination of a business’s current position so that it can help the business to develop or plan a direction of development or a proper strategy in future.
Uses of SWOTanalysis:
SWOTanalysis is an effective way of gathering and classifying information, illustrating particular matters, and generating strategic planning ideas for a business.
The result of the analysis may provide a basis on which a more detailed analysis can be conducted.
SWOTanalysis is, therefore, often used as a method by which a business or its marketing department can plan its marketing strategy.
1. Sound financial records. Starbucks profitability has been rising for the past few years and is now 14%. The company also outmatches its nearest competitors with 24.54% return on investment and 29.16% return on equity.
2. No. 1 brand in coffeehouse segment, valued at $4...
...focuses on a SWOTanalysis which stands for strengths, weaknesses, opportunities, and threats against a particular company. The company discussed in this paper is of the coffee company, Starbucks. This paper also provides a detailed SWOTanalysis figure on page four for review. Further information can be found on Starbuck’s website at starbucks.com.
With its vast array of decadent drinks, snacks, and a welcoming atmosphere, Starbucks has become a staple in our society. However, like any other company out there, Starbucks has its strengths, weaknesses, opportunities, and threats against it. An analysis of this type is referred to as a SWOTanalysis. With a vast array of strengths, Starbucks also lacks in a few areas but with the chances of future opportunities high, they can reduce their threats against them to stay on top in the coffee world.
The strengths of Starbucks include everything from providing their products all over the world to each facility being clean, welcoming, and easily located. However, not every company is perfect. One of the most profound weaknesses would be their extremely high prices for their specialty coffees. Their high prices could turn away customers from purchasing them. An area of improvement includes...