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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