SWOT Analysis Of Starbucks

898 Words4 Pages
Executive Summary

Starbucks is an American coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the biggest coffee-house organisation in the world with more than 21,500 stores in 64 nations as of May 2015. The very first Starbucks opened in Pike Place Market in Seattle on the 30th of March, 1971, founded by Jerry Baldwin, Zev Siegl and Gordon Bowker. From Starbucks’ founding as a Seattle coffee bean roaster and retailer, the company has expanded rapidly; especially between 1987 and 2007 when an average of two new Starbucks stores were opened every day. This report is based on the strengths, weaknesses, opportunities and threats that affect Starbucks Corporation and the recommended solutions and actions needed to
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Starbucks is known to be the number one brand in the coffeehouse segment. Starbucks has had and still has a strong reputation associated with quality coffee and excellent customer service. Having a strong brand name is a marketing strategy with the capability to make any product or service a household name. Strong brand names have the ability to increase customer loyalty and product sales.

Starbucks is also said to deliver to their customers with perfectly blended coffee, premium music, friendly staff & a warm atmosphere, which results in incomparable customer service as compared to their competitors. Good customer service is at the heart of many successful businesses. This is because good customer service leads to satisfied customers which not only will increase customer loyalty, but also produces a good reputation for your company as well as increase the spending power of the customer with your business.

Besides that, Starbucks also has a very strong customer base loyalty. Customer base loyalty is the lifeblood businesses; the collapse for numerous businesses is because of their failure to keep their customers. Therefore, building a strong and loyal customer base is crucial as it literally keeps a business
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Rising prices of coffee beans and dairy products.
Health conscious consumers
Cases over illegal use of the Starbucks trademark

Recommended Solutions / Actions

Starbucks’ product pricing is expensive compared to their competitors. They should reduce their product prices by using cheaper beans to produce new type of coffees. Starbucks can offer promotions and special discounts to their customers as well. Such as buy one free one, or buy one and get 50% off for the second cup.

Secondly, on-the-go consumers don’t have time to wait in long lines in the morning, they prefer to have their drinks ready when they want them. Starbucks can solve this by creating a mobile apps for consumers to order ahead. The app should include a setting that enables customer to set an estimate pick-up time of their order.

Starbucks refuses to go greener, which cause them to receive negative publicity from eco-friendly activists. Starbucks can start recycling their plastic cups. Consumers can help Starbucks by cutting down on the use paper bags when having their drinks or food take
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