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Starbucks in 2009: The Coffee Goes Cold
Pages 4 (1004 words)
A lot of people believe that the United States is the land of opportunity. The story of Howard Shultz, founder of Starbucks, would make you believe that the phrase is completely true. Mr. Shultz after acquired the brand name Starbucks and he turned the company from a six outlet operation into the global leader in the coffeehouse industry with 16,680 outlets worldwide.
Starbucks sells a premium product which based on the laws of economic these types of product have a declining demand during bad economic times due to lower consumer disposable income. This paper will analyze Starbucks Cafe. Some of the tools that will be used to analyze the company include SWOT analysis, financial analysis, alternative solutions, and recommendations. SWOT Analysis One of the strengths of Starbucks Cafe is its tremendous brand value. The company is the market leader in the industry by a wide margin. Starbucks has 16,660 outlets, while its closest competitor in the United States has less than 500 stores. The firm enjoys a huge market share advantage over the competition. The product variety of the company is another strength of the company. A third strength of the firm is its tremendous corporate social responsibility program. In 2009 Starbucks doubled its purchases of fair trade coffee and it implemented a program in which it donated 5 cents out of every sale of certain beverages towards the AIDS cause. A weakness Starbucks faces is that the coffee market has become saturated in the United States. There are over 22,000 coffeehouses in the United States. A second weakness Starbucks Cafe has is that its product is priced higher than many competitors. ...
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