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Starbucks Analysis (Swot, Strategies And Core Competencies)

1140 words - 5 pages

Starbucks

1. Internal strengths and weaknesses: One internal primary strength of Starbucks include having high visibility locations. Starbucks are located in almost every mall, near schools and office areas to attract customers. Sometimes, there are even multiple Starbucks branches in one area. Around DLSU-M, there are already three Starbucks. This 2013, they are even planning to expand more. Another internal strength of Starbucks include having an established logo and developed brand. Most people would recognize the Starbucks logo without needing the word Starbucks attached to it or some could already visualize their logo by just hearing or reading the word Starbucks. In addition to ...view middle of the document...

There is Coffee Bean and Tea Leaf, their main competitor, that offers similar products with almost the same pricing strategy and McCafe, as their indirect competitor, that sells more affordable products. Second, their product pricing. They products are expensive and in a country like the Philippines, their prices are high for an average person.

2. Opportunities and threats: One of Starbucks’ opportunities include opening a new distribution channel. They can provide deliveries or simply add more drive-thrus since there is only one Starbucks drive-thru here in the Philippines. People who buy coffee usually want it to-go because they are always in a hurry or they are busy and have work to do. Another opportunity include expansion to retail operations. They should add to the few supermarkets and grocery stores that are already selling ready-to-drink Starbucks products.

However, Starbucks is facing a number of threats. First of all, there is an increasing competition between coffee shops and others. Aside from the competitors I mentioned in number 1, there also cheaper coffees that can be bought from groceries and are available in a variety of flavors. Next, people


 

3
 

nowadays are very conscious of their health and are trying to minimize their caffeine consumption. Although Starbucks offer decaf drinks, consumers are gearing towards healthy ways and are avoiding unhealthy sugary drinks all in all. And lastly, there is a fragile state of worldwide production of specialty coffees.

3. Strategies that the company deploys (Is it doing well with this strategy? Is it leading or lagging its rivals?): “Starbucks on every corner” is one of the strategies that Starbucks deploys. Two months ago, Starbucks announced that they will open 3,000 new stores in America alone by 2017 and have more than 20,000 retail stores on six continents by 2014. The company’s fastest growing region is Asia where China will become the second biggest market with 1,500 stores by 2015. Starbucks is obviously planning an aggressive growth strategy which is really good for them. They started with only one store about 30 years ago and now their empire is continously growing. Prior to this strategy, they also had a similar strategy called “third place” –which established Starbucks as the place to go to between home and work/school. They have created a unique coffee experience that is enjoyable to their consumers and have made the people become attach to their brand. Another one of their strategies is entitled “perfect cup of coffee”....

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