What are the strengths weaknesses of Starbucks corp?

Answer 1

Strengths Weaknesses

Great and Rich Tasting Coffee Very Expensive High Income The organization has a strong presence in the United States of America with more than three quarters of their cafes located in the home market. It is often argued that they need to look for a portfolio of countries, in order to spread business risk. High Price Needed The organization is dependant on a main competitive advantage, the retail of coffee. This could make them slow to diversify into other sectors should the need arise. Sell More Than Coffee Focus Too Much On Their Coffees Numerous Coffee Campaigns Too Much Money Starbucks Corporation is a very profitable organization Starbucks has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may falter over time.

Opportunities

Starbucks are very good at taking advantage of opportunities. In 2004 the company created a CD-burning service in their Santa Monica (California USA) cafe with Hewlett Packard, where customers create their own music CD. New products and services that can be retailed in their cafes, such as Fair Trade products.

The company has the opportunity to expand its global operations. New markets for coffee such as India and the Pacific Rim nations are beginning to emerge. Co-branding with other manufacturers of food and drink, and brand Franchising to manufacturers of other goods and services both have potential.

Threats

Who Knows If the market for coffee will grow and stay in favor with customers, or whether another type of beverage or leisure activity will replace coffee in the future? Starbucks are exposed to rises in the cost of coffee and dairy products. Since its conception in Pike Place Market, Seattle in 1971, Starbucks' success has lead to the market entry of many competitors and copy cat brands that pose potential threats. McDonalds McCafe looks like a threat to Starbucks right now . Customers always like trying new drinks and food.