Management 303 SWOT Analysis - Blanca's Portfolio



Starbuck SWOT Analysis Blanca FloresDeVry University Professor Kathy?Stricklin9/23/12Starbuck SWOT AnalysisThe first Starbucks was opened in 1971. Back then the company was a single store in Seattle’s historic Pike Place Market. From just a narrow store front, Starbucks offered some of the world’s finest fresh-roasted whole bean coffees. The name was inspired by Moby Dick, evoked the romance of the high seas and the seafaring tradition of the early coffee traders. In 1981 Howard Schultz walked into a Starbucks store for the first time. After his first cup of Sumatra Howard was drawn into Starbucks and joined a year later. A year later, in 1983, Howard traveled to Italy and became captivated with Italian coffee bars and the romance of the coffee experience. He had a vision to bring the Italian coffeehouse tradition back to the United States; place for conversation and a sense of community. A third place between work and home. He left Starbucks for a short period of time to start his own Il Giornale coffeehouses and returned in August 1987 to purchase Starbucks with the help of local investors. As we all know every business has a mission statement. Therefore Starbucks mission statement is “to inspire and nurture the human spirit- one person, once cup and one neighborhood at a time.” Starbucks coffee has always been, and will always be, about quality. Their partners embrace diversity to create a place where each of us can be ourselves. They always treat each other with respect and dignity. However not every business is perfect and that is the reason why it is important to have a SWOT analysis it helps the business be aware of their strengths, weaknesses, opportunities, and threats.Starbucks strengths are the fallowing; Product diversification Established logo, developed brand, copyrights, trademarks, website and?patents, Company operated retail stores, International stores (no franchise), High visibility locations to attract customers, Valued and motivated employees, good work environment, Good relationships with suppliers, Industry market leader?, Globalized Customer base loyalty, Product is the last socially accepted addiction, Widespread and consistent, Knowledge based Strong Board, and Strong financial foundation. 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 It is a global coffee brand built upon a reputation for fine products and services. It has almost 9000 cafes in almost 40 countries. Starbucks was one of the Fortune Top 100 companies to work for in 2005. The company is a respected employer that values its workforce. The organization has strong ethical values and an ethical mission statement Starbucks has a reputation for new product development and creativity. However they remain vulnerable to the possibility that their innovation my falter over time. The organization has a strong presence in the United States with more than three quarters of their cafes located in the home market. It is often argued that they need to look for a portfolio of countries in order to spread business risk. The organization is dependent on a main competitive advantage the retail of coffee. Therefore the weakness are the fallowing; Lack of internal focus (too much focus on expansion), Ever increasing number of competitors in a growing market, Self cannibalization, Cross functional management, and Product pricing (expensive).Starbucks is very good at taking advantage of opportunities. In 2004 the company created a CD-burning service in their Santa Monica California cafe with Hewlett Packard, where customers create their own music CD. That would be their new products and services that can be retailed in their cafes, such as Fair Trade products. The company has the opportunity to expand its global operations. New markets for coffee such as India and the Pacific Rim nations are beginning to emerge. Co-branding with other manufacturers of food and drink, and brand franchising to manufacturers of other goods and services both have potential. Starbucks has plenty of opportunities they can expand into retail operations Technological advances,?New distribution channels (delivery), ?New products, Distribution agreements, Brand extension, Emerging international markets, Continued domestic expansion/domination of segmentBut like new opportunity there are also a lot of threats for the business. The threats for Starbucks are US market saturation, Coffee price volatility in developing countries, Negative publicity from poorly treated farmers in supplying countries, Consumer trends toward more healthy ways and away from caffeine, Fragile state of worldwide production of?specialty coffees, Alienation of younger, domestic market segments, Cultural and Political issues in foreign countries, and Competition such as restaurants, street carts, supermarkets, other coffee shops, other?caffeine based products. Who knows if the market for coffee will grow and stay in favor with customers, or whether another type of beverage or leisure activity will replace coffee in the future? Starbucks are exposed to rises in the cost of coffee and dairy products. Since its conception in Pike Place Market, Seattle in 1971, Starbucks' success has lead to the market entry of many competitors and copy cat brands that pose potential threats.Starbucks is a great corporation and just like any other company Starbucks has it’s strengths, weakness, opportunities, and threats. There are a lot of ways to improve their business but the first step is to know where they are that is why it is important to do a SWOT Analysis when need it. As for Starbucks all they have to do to avoid there threats is to always be after them for example if they see that they have a small coffee shop on the corner of their business all they have to do is stay on top of the competition by taking new opportunities and continue to have grate customer service. References , retrieved on 9/23/12 –retrieved on 9/23/12, retrieved on 9/23/12 ,retrieved on 9/23/12 , retrieved on 9/23/12 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download