Starbucks Strength

1019 Words5 Pages
In this research we will look at the aspects that helped Starbucks become one of the most leading coffee houses in the world, and how their adaptation to total quality management helped them achieve such global success.
Company background
Brief introduction to the Starbucks
Starbucks has established its first small café store in Seattle’s Place Market in the year 1971 by Jerry Baldwin, Zev Siegel, and Mr. Gordon Bowker. They were an English teacher, a history teacher and a writer. Each one of them participated by giving $1350 for a start-up, another $5000 was taken as a loan. The idea of Starbucks name was chosen in honour of Moby Dick cartoon; Starbuck. Ever since it began, Starbucks aim was to provide premium, high quality coffee
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Even when the tides go tougher entering Saudi market, they offered to serve their female customers behind winds, as it forbidden to have both genders in the same room.
SWOT analysis of Starbucks
Based on the Research, the paper has covered strength, weaknesses, opportunity and threats of Starbucks.

• Well-reputed and established organization: Starbucks is famous for their specialty coffee beans and its coffee in the world. It has well well-reputed and established branches throughout the world.
• High Quality Product: they offer local & fresh quality products (whether foods or beverages) and services as well as merchandise. The company is following TQM methods for maintaining the high standards of quality.
• Market share & strong brand image: they are holding a competitive brand image in the industry. It has partially higher market share in the industry.
• Set of Standers practice: Starbucks has set standard of their HR & CSR practices. It has friendly and motivated work culture which would minimizes turnover and maintains the company loyalty.
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• Penetration in Europe market: Starbucks is finding it difficult to meet the expectations of customers who belong to European culture. Their coffee culture is different from the one in USA.
• Reliability on one product category: The whole brand image of Starbucks is purely based on its coffee. It is heavily dependent on its key competitive advantage. This leads to have least diversity in different sectors (Wardhana, N.A).
• High Operating Cost: it is known that Starbucks has an outstanding customer service because of their encouraged and skilled employees. (Wardhana,
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