Starbucks SWOT Analysis
Strengths: Starbucks has become a popular company for selling the best tasting coffee products and the highest quality of coffee beans. As a result, Starbucks has acquired a solid brand reputation and has a world renowned company logo trademark. There are no other national coffee bar competitors in the same scale as Starbucks. They are the only competitor in the coffee bar market that has a recognized brand image. They also own trademarks, copyrights, domain names and patents. By looking at their latest quarterly SEC filing, it is apparent that the company is in a positive financial condition. They are virtually debt free and are in a good cash flow position. The company has also realized a steady sales growth rate. During the 13 weeks ended June 27, 2004, all areas of Starbucks business, from domestic and international retail operations to the Company's specialty businesses, delivered strong financial performance, and innovation was prevalent throughout the Company's operations. The management of this coffee chain is very conscious of the fact that all things matter in running their business. They have a separate licensing division which is in charge of hiring, employee training, the store app
Most recently, Starbucks has grown more in the suburbs of cities than in the large dense downtown areas. Recently, there has also been a consumer trend toward more healthy ways. Their products are distributed through company operated retail stores in highly visible locations in addition to well-known grocery store chains. In some of their locations the desserts are limited to a very small collection of muffins, scones, and biscuits. Because caffeine increases the production of stomach acid it may worsen ulcer symptoms or cause acid reflux ("heartburn"). These secondary markets, such as Midwestern cities: Des Moines, Iowa, Omaha, Nebraska, and Jackson, Mississippi, are ripe for growth as people desire a different coffee experience. Their high prices may lead customers to shift to the nearest competitor. Weaknesses : Even though Starbucks has many strengths, it also has a few weaknesses. Starbucks is one the first companies to recognize the lucrative opportunities in beverage retailing, not just in coffee beans. The coupling of coffee with books is a natural combination that has increased sales dramatically and is sure to be a hit on into the future. But the opportunity is present for smaller sized cities and suburbs to experience an Italian-style coffee shop. This will tighten the margins on coffee merchants. One other general place of concern is the gas station & restaurant industry, particularly, fast-food places. Since they have already expanded into Europe, Canada, and Japan, Starbucks has enjoyed much success.
Common topics in this essay:
Strengths Starbucks,
Cafe Starbucks,
Weaknesses Starbucks,
Pepsi Co,
Opportunities Opportunities,
Seattle York,
Jackson Mississippi,
Japan Starbucks,
East Starbucks,
coffee beans,
cup coffee,
retail stores,
cafe starbucks,
coffee shops,
retail operations,
future plans,
coffee available,
price coffee,
coffee bar,
|
Acceptance Essays
