SWOT analysis of starbucks

Internal External

SWOT Analysis of Starbucks

Positive

Negative

Strengths:

Weakness:

? Starbucks' recently launched first major advertising

? Rapid growth of Starbucks branches, 2,571

campaign focuses on customer satisfaction

stores in 2007 alone, across the nation put

? , was designed to allow customers

customer satisfaction on the backburner

to provide feedback on numerous topics

? Regional executives were ill-equipped to

? New president of global development is attempting to

manage the proliferation of new stores and

revamp the homogenous image of Starbucks by designing

communicate with the executive managers in

each store to distinctly reflect its local community

different time zones

? Breaking away from the big corporate company image ? Misalignment of company goals and

and moving toward a more local, unique image by

consumer needs: the experience no longer felt

revitalizing the company goals to better match those of

personal

the consumer

? Failure to understand and ask what customers

? New concept of management that follows the mindset of

wanted--didn't take the customer into

an infant entrepreneur: taking risks and working nonstop

account when designing stores and new drinks

? Putting a stop to rapid store openings, closing

? Loss of company direction which resulted in

unprofitable ones, and devoting attention to the remaining

previously loyal customers opting for

ones

independent coffee shops who cared more

? These efforts led to a rise in net income and revenue from

about the coffee they were serving

the first quarter last year to this year

? On-the-go consumers don't have time to wait

? Remains a place where employees want to work--offers

in long lines in the morning, they prefer to

healthcare and a relaxed environment

have their drinks ready when they want them

? Ensuring future top executives come from within the

Starbucks brand and are saturated in the company's

values and culture

? Increased sales as a result of social-media promotions

? Encouraging online fans to share their stories of both their

Starbucks and personal experiences make consumers feel

invested in the company

Opportunities:

Threats:

? Rapidly developing and expanding culture of social media ? Failed to understand the implications of the

has allowed Starbucks to create a Facebook and Twitter

economic downturn

account

? Consumer fear of corporate giants putting

? Social media campaigns centered on building consumer

local coffee shops out of business turned

relationships with the company are more effective than a

potential customers away

marketing campaign aimed at selling products

? Consumers are spending less on luxury

? Recent partnerships with Project RED, Pandora, and

products and more on necessities

iTunes have the potential to entice a new group of

? Consumers' fear of large corporations has

consumers to drink Starbucks

made many wary of giving money to large

? Online coupons offered on the company websites can

companies like Starbucks

create a cult of online followers

? McDonald's launch of pocket-friendly

? Social media websites make it easy to quickly spread the

espresso and coffee products emerged as

word about upcoming events and to dispel rumors about

competition to Starbucks' pricier items

the company

? Independent coffee shops are sprouting up

? Demand for and feasibility of iPhone apps can make

across the country, wooing customers away

locating Starbucks stores and reading nutrition facts fun

from Starbucks with unique coffee flavors and

for Starbucks consumers

a more personal experience

? With the new loyalty card, Starbucks can offer benefits ? Newly debuted Via instant coffee is set to hit

and rewards to a select group of people, making other

grocery stores soon, but will have to compete

consumers want to join

with the most popular Nescafe brands

? Twitter allows companies to constantly be in touch with ? Instant coffee is not extremely popular in the

their consumers, meaning questions are answered almost

U.S, meaning Starbucks will have to expand

immediately

the consumer market for this product and

? By selling products in grocery stores, Starbucks has the

manage the distribution well

potential to join with other food brands to create more

pocket friendly products and expand their company

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