Small coffee retailers are providing more to the people of the towns that they are located than Starbucks does as those small local coffee retailers offer reasonable priced for their coffee. People would prefer to have a reasonable priced coffee to Starbucks’ overpriced coffee. Even though, there might be some people who would be happy to have Starbucks instead of their small coffee retailer but the majority of the people still enjoy their local coffee (Katie , 2013). Small coffee retailers provide more happiness to the local people than Starbucks
SWOT Analysis: The section gives you a well-rounded analysis of Starbucks strengths, weaknesses, opportunities and threats. With a market share of 32.8% in the United States (Statista, 2015) and with 21878 stores in 66 countries (Starbucks, 2015), Starbucks has a significant presence across the world. It is one of most prestigious brands in the coffeehouse sector and ranks 52 in world’s best brands (Forbes, 2015). Its strong market position and brand has enabled Starbucks to expand into International markets and also to grow significantly in the domestic markets. Over the years, Starbucks has achieved significant economies of scale with superior distribution channels and supplier relationships.
SWOT ANALYSIS OF STARBUCKS Strength Starbucks Coffee is very popular all over the world as it the number 1 brand coffeehouse chain. It is known based on their brand and quality .Therefore strong brand image can be categorized under one of the strength of Starbucks (Lombardo, 2015). In addition to that, the firm has a large global network of suppliers. Starbucks operates about 20000 coffeehouses in about 60 countries which make Starbucks the largest coffeehouse chain in the world (Jurevicius, 2013). The Coffeehouse also has good employee management compared to its competitors because it offers high salary and benefits to its employees.
Due to the moderate cost of managing business as well as supply chain management, the new competitors can definitely compete with Starbucks. For instance, they can choose to lease equipment or stores and therefore the initial investment cost is relatively low for them. Since there is no switching cost for the consumer, the small coffee shop can actually compete with Starbucks at certain level. In this competitive industry, the new competitors has a moderate possibility to be successful. However, new entrants will find it difficult to compete against with Starbucks as they find costly to develop such a strong brand like Starbucks.
The weakness of Starbucks company is customer markets. Customer markets can be defined as a term for the section of available customers who currently give money or support to a business, especially for a product or service. This group of customers can grow and reduce their product or service due to changes in the business environment. Customer markets is also a weakness for Starbucks company because the products are very expensive. Starbucks company should lower their product’s price in order to gain more customers and profits.
Nearly all monopolistically competitive companies are marginally ineffective since assembly average total cost is not at the lowest level. In this case, in the long run, the marginal cost is cleanly lower than the cost of the product. This means that the cost of the Starbucks drink is marked up above the cost of production. The charge of manufacturing for Starbucks might not be the most cost-effective, but it is below the cost charged for their gastronomes. This may possibly also give explanation of why the cost of Starbucks coffee is very expensive; their production costs are high and that costs are imposed to the clients to raise their profits and reduce operating costs.
We can’t even start our day if we don’t have a perfect cup of coffee in the morning. A perfect cup of coffee makes our day with the guts for the day long activities. But sometimes we just don’t have the time for it in our daily rush. Where, a coffee maker can simply do that and save much of our time. So, Coffee lovers!!!
The Starbucks is famous for its having a large number of high loyal customers and luxury products. Strong financial picture: Earning per share, net revenues, store sales, operating income were all in a comparable high level. Extension: Starbucks is planning to open 1,200 new stores in year 2013, most of them in the U.S. and China. Market advantage: Starbucks is the world 's largest coffee store, with almost 20,000 stores in 60 countries over the world, 12,937 of which are located in the U.S.A. Weaknesses Starbucks is having a difficulty in entering Europe 's "cafe culture" because of different regional taste.
Currently, there is a younger and technology savvy population whose online engagement can make or break the business of a company. Thus, Starbucks has an opportunity to increase the online coffee purchases and delivery, and hence, expand the customer base. Likewise, coffee farmers have been using traditional and crude ways of growing and harvesting coffee. Thus, to remain competitive through sourcing the best coffee beans, Starbucks can support farmers with better technology to grow and manage the coffee beans. However, technology has a downside as a number of companies from the Asia Pacific region are offering high-quality home-making coffee machines at cheaper prices, and thus, might in the long run substitute the store coffee purchases.
Normal taste & nature of items: As per the business study, other than their Dessert, Barista got just a normal rating for the taste & nature of their items. Considering their solid brand picture of being the espresso mate 's conventional spot, they have not performed up to desires around there. Client impression of Barista 's costs and quality for cash are very negative. Despite the fact that the costs of Barista and Café Coffee Day are very nearly indistinguishable, Barista is still seen as the more costly brand. Café Coffee Day 1.