Starbucks Swot Analysis Essay
Introduction Starbucks built an empire for the modern persons’ need for a quick coffee. This case study is created on the basis of Starbucks Corporation. This case will include an analysis of differentiation and an expansion strategy that Starbucks has implemented; following it up with Porters Five Force Model and a SWOT analysis to analyze the internal and external environment of Starbucks Corporation.
Background
The history of Starbucks, all started out when it was introduced in 1971 by three academics, Jerry Baldwin, Zev Siegel, and Gordon Bowker, and by 1980, Starbucks grew to four stores in Seattle. In 1981, Starbucks’ expertise of dark-roasted coffee caught the attention of Howard Schultz who was an American business man, and since
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Threat of substitutes is high; coffee could be substituted by other beverages such as tea, juice, water, and sodas. Bargaining power of buyers is also high since Starbucks has become very popular, and because they are maintaining customer satisfaction. The demands on Starbucks’ products are high which implies that the bargaining power of suppliers will also be high. And of course, competition is always available, therefore competition is always high.
Starbucks SWOT Analysis
In this SWOT analysis, we will examine the strengths, weaknesses, opportunities and threats of Starbucks Corporation.
Strengths
Starbucks has a strong market position and global brand recognition. Starbucks Corporation is operating in many countries and has one of the highest rankings in brand recognitions. They have motivated, high knowledge employees who work hard to achieve company goals and that’s due to a good work environment. Starbucks implements loyalty programs to help maintain customer satisfaction. It is also known as a corporation that adopts product differentiation. They have seen growth during the years.
Weaknesses
Weaknesses are always present, even in the top companies. Starbucks has a number of competitors in the market, and have high cost products when comparing them to other competitors. Another weakness that Starbucks lacks is in their marketing techniques, they are depending more on word of mouth.
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