Friday, February 22, 2019
Swot Analysis of Starbucks
way 303 SWOT Analysis of Starbucks Corporation Section I Organizational narration / Mission Statement In 1971, Starbucks opened its kickoff fix in the touristy Pikes Place Market in Seattle. The Starbucks name is derived from the deep brown-loving first mate in the novel, Moby Dick. The logo, a two-tailed mermaid encircled by the stores name, continues with the theme and primer of the name. From the beginning, Starbucks prides themselves on non only providing their customers with noble-quality whole bean coffees, but withal with providing them with an inviting atmosphere.The mission statement, to inspire and nurture the human spirit genius person, one cup, and one neighborhood at a time, is seen today in the more than 15,000 locations in more than 150 countries. Section II Strengths and Weaknesses In my opinion, the top two intensitys of Starbucks is their strong brand image associated with their high-quality coffee and their act and strong workforce. Their top two wea knesses in my opinion atomic number 18 their high premium prices and lack of internal focus. Strength 1 Strong pit ImageAccording to G Serrano, The strongest attribute that consumers associate with the Starbucks brand is its cosmos kn avow for specialty/gourmet coffee. Starbucks is a widely-recognized brand. Its top-of-mind rec each(prenominal) is high. It is both a sign name and a buzzword. By becoming a household name race go to Starbucks to get the Starbucks Experience. This means that Starbucks has make their stores so inviting that people actually get up early in the morning, grab the paper or a good book and parkway down to the local Starbucks and basically salutary chill out.They provide an nonmandatory light snack, a good cup of coffee, free Wi-Fi and the comfort of your own home. Being highly recognized for all of the above qualities has contributed in the egression and expansion of their many locations finishedout the US and abroad. This is a huge strength in t hat that being on top of the market sh be hand whatever much en reals that no matter what they will continue to stay on top because of their branding and their popularity. Strength 2 Committed and Strong work forceNot only does the coffee drive customers to Starbucks, but the dedicated employees who sell about their jobs and their customers do as well. Starbucks envisages so highly of their employees, they call them partners. The partners are the ones who create the atmosphere that makes the customers feel the way they do about Starbucks. As Hammers stated in her Workforce Management piece, The societys generative benefit blend keeps originateover low and employee satisfaction high. And thats why its the Optimas exhibit winner for Quality of Life. As business owners and managers, our job is to make sure that our employees or partners, for that matter, are happy and well-trained. When this happens, as it has with Starbucks, it outwardly shows to the clientele and it makes th em pauperization to come back time and time again. Weakness 1 high up Premium Prices Starbucks is a premium brand that commands premium prices. As rivalrous pressures increase, the company could be undercut by lower price rivals such as McDonalds or Duncan Donuts. Recession or downturn in the economy, wish we are facing now, affects consumer spending. If Starbucks continues to increase prices over the next few old age in the face of increase coffee prices, there could be a downside to their forecast. In this highly competitive market and with less disposable income to spend, consumers turn to lower priced venues and competitors. Starbucks should look into some sort of cost saving efforts when it comes to the coffee beans that they buy. I know they are known for their premium brands, but with prices on the steady increase something Weakness 2 Lack of Internal counsellingStarbucks has grown by leaps and bounds over the past decade or so. They seem to be consumed with growing their market share by increasing the amount of locations they withdraw within the states as well as abroad. Serrano states simply this point in saying The growth strategy was not truly the failing point. In fact, this augured well for the companys bottom line. What the companys executives failed to see was the fact that if it wanted to saturate the market, its product and serving offerings were not really meeting the characteristics of the market.That is why the market perceived Starbucks as merely concerned with growth in the number of stores and profits. The wide electromotive force market base did not see Starbucks as concerned with their needs. Starbucks goes through a lot of effort to get the opinions of their partners and their clients. They even have a board of people who read the queries on a monthly rear to see where improvements can be made. Since they are putting in all the effort, they need to follow through and start listening to the very people that give them t heir profits. Expanding will do no good if you dont have any customers.The more they neglect what their partners and customers are saying, the more they are going to lose touch. Section III Opportunities and Strengths In my opinion, the two biggest opportunities for Starbucks are increasing their CRM and database marketing and expanding into new product lines. Strength 1 change magnitude CRM and Database Marketing One of the greatest opportunities for Starbucks is to increase their CRM and Database Marketing. At the moment Starbucks just asks you what you want, you pay for it, they make your drink and you are on your way.In run to better serve their clients and give back to them, they could come up with some type of rewards program. Many large retailers and food chains have already begun these programs. This would help them stay in touch with their clients by sending them emails of coming(prenominal) events, new drinks and new offers. They could also attach a rewards program fo r the customers who have a daily addiction to their drinks. This basically becomes a win-win situation for not only Starbucks but for their customers as well. Strength 2 Expanding Product Lines and serviceWe all know that Starbucks has the best selection of coffees around. Unfortunately, that is all they do. I think one of the greatest opportunities for them would be for them to expand their food line to go a bulky with their drinks. Seeing that they are open all day long and into the night, they could benefit greatly by developing a larger eat line. They currently have small salads and finger sandwiches at some of their locations. By increasing their menu they could also increase their profits. This would help give them a competitive advantage of other cafes along the same lines as them.