Marketing, Take Home Exam 1
September 7, 2010
Homework
|SWOT Analysis of Starbucks |
| |Positive |Negative |
|Internal |Strengths: |Weakness: |
| |Large brand presence and popularity. |Recent rapid decline in stocks leaves investors wary. |
| |Breadth of available products other than just coffee (i.e.|Recent overexpansion issues leave company in financial problems, as |
| |mugs, merchandise, pastries). |well as giving the company a homogenous megacorporation image, which |
| |Large and loyal customer base. |is unpopular at best for coffee drinkers. |
| |Successful and expanding presence in supermarkets. |Consumers’ general penny-pinching attitude leaves little room for |
| |America’s general caffeine addiction. |gourmet coffee. |
| |Return of Howard Schultz to reinvigorate brand presence. |Consumers’ general distrust of large corporations. |
| |High level of product customization, in tune with consumer|Consumers often find coffee overpriced. |
| |need for personal experience. |International efforts less successful than hoped for. |
| |Successful use of online social media platforms. |Movement to reinvent brand image by localization is costly. |
| |Fresh brand image rejuvenates customer experience. | |
| |Increasing movement toward regional specialization. | |
| |Stocks picking up much of recently lost value. | |
|External |Opportunities: |Threats: |
| |New supermarket product “pipeline” has large profit |Brands like McDonalds and Dunkin Donuts who offer gourmet coffee at |
| |potential. |better prices. |
| |Localization movements combat brand’s megagiant reputation|New supermarket product line unsupported by reputable food retail |
| |and appeals to highly personalized “coffee shop” consumer |brands, unlike previous successful supermarket products. |
| |market. |Small local coffee shops offer the personal atmosphere that many |
| |Ever-increasing prevalence of social media platforms, for |coffee drinkers want. |
| |which Starbucks has already gotten large following. |At-home coffee brewing offers optimal personalization at much lower |
| | |cost than brand coffee. |
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