Weaknesses Of Starbucks

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Weaknesses High priced products: Starbucks is being differentiated with the high quality of products but during the economic recession, consumers might have to switch costs to competitor products that the prices of their products are low. The premium prices can create weaknesses to the company that is trying to succeed in less developed countries. High dependence in the U.S. market: Starbucks operates 7.049 stores in the U.S. while 8.078 stores are being operated in total America and 2.116 stores internationally. The percentage of stores operated in U.S. is 69% which diminishes long term growth of Starbucks. file:///C:/Documents%20and%20Settings/marketing/%CE%A4%CE%B1%20%CE%AD%CE%B3%CE%B3%CF%81%CE%B1%CF%86%CE%AC%20%CE%BC%CE%BF%CF%85/Downloads/Starbucks%20Fiscal%202013%20Annual%20Report%20-%20FINAL.PDF…show more content…
According to New York Times “Now, Starbucks is embarking on a multimillion-dollar campaign to win over more of Europe’s coffee aficionados — with an upscale makeover of hundreds of stores to cater to an ingrained cafe culture, and adjusting beverages and blends to suit fickle regional palates”. Opportunities Expand into new Markets: Starbucks advantage is that the company can leverage the size, experience and financial power to enter new markets and create new market share. “The potential for ongoing growth in China is important for Starbucks. Currently there are more than 3,000 stores in China, and it is one of the fastest growing countries for the Company. In the first fiscal quarter of 2013 the China/Asia Pacific segment alone achieved sales of $214.3 Million, an increase of 28% over the previous year with comparable store growth in the region rising 11%, contributing to the 6% same store growth worldwide.”…show more content…
(Kotler, Starbucks aim is to give to customers more than just a cup of coffee. Starbucks wants customers to live the experience and integrate this experience to their routine functions. Product Starbucks aims at high standards with high quality of coffee that provides to customers and with the introduction of new innovative products and excellent services in order for customers to feel the “Starbucks experience”. Starbucks wants constantly to provide innovative product to coffee lover by introducing new products such as “Via flavored coffees”. In order to fulfill customers’ satisfaction, Starbucks has gone little beyond by offering espresso makers through Starbucks store for customers who want to purchase them and live the Starbucks experience at
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