The existing specialty shops to serve as a threat. However, outlets outside would have existent players who understand the cultural aspect better, thereby posing a threat.
Starbucks can deal with these mild threats by including other beverages in its menu (which it already does, but add variety to the non caffeine products being catered) and by entering into agreements with few large suppliers to seal the cost of inputs.
Based on the SWOT analysis, we can say that diversification (outlets in USA and in many countries outside) is a positive aspect in Starbucks but if the process is not synchronized and planned well it may act as a deterrent to the image. The group also believes in introducing newer products in shorter duration of time, this helps retain customers, but may cause confusion in the customer’s mind. The price paid is higher than its competitors, but the elite ambience helps negate the price difference.
Starbucks has a unique way of treating its employees and care for all its employees as partners in the company, with every employee having the option to stocks and health insurance; thereby, keeping the employee turnover rate higher at 70% (industry standard 30%).The structure is not driven by the hierarchy instead every employee is given the power to enhance the decision process. Employees are also given training before they start administering their work to assure quality of service. Starbucks is also well paced with the current trends of e-marketing which makes it more accessible. Lastly, the research and development team is very active constantly forming new products to introduce to the menu list.
Starbucks can take either (1) sustain the aggressive growth plan and harness the services provided at the existing outlets (2) invest the proposed $40 million annually to help achieve higher customer satisfaction (3) modify the products on offer, based on the demographic position of the outlet (4) continue with
For Starbucks to provide high customer satisfaction, keeping it aligned with the active diversification (geographical and product), which will help them maintain their premier image and competitive advantage.
(1) Threat of substitutes: substituting coffee completely is a rare…
Many people prefer taking coffee in a relaxing atmosphere where they can join friends and hold business meetings. This paper will discuss whether Starbucks should consider setting operations in Africa. This concept started in US and has spread to other parts of the world.
The company came to develop an aura that has been referred to as the Starbuck’s Experience. The research report considers how this Starbuck’s Experience has come to play a critical role in the company’s current dilemma. It’s demonstrated that while the company enjoyed unprecedented success, recent years have posed a number of challenges.
Industry executives express concern and necessity to increase the quality of clinical trials and resolve the existing challenges, including delays in obtaining data, the lack of richness in clinical data, patient drop offs, and the rising costs of clinical trials.
The paper then goes ahead to analyze the options available for Starbucks to undertake. The paper’s arguments are centered on Starbucks’ five forces industry analysis, core competencies and the blue ocean strategy that eventually lead to the recommendations made.
............ 2. Five Forces Analysis.............................................................................................. 3. Porter’s Value Chain............................................................................................. 4. Recommendations for where IT can bring the most significant advantages.
The key factors contributing to the success of the company includes its strategic management, quality control and distinctive marketing approach. Analyze Marketing Activities and Performance of Starbucks Company Background Starbucks Coffee Company (NASDAQ: SBUX) was established in 1971.
This report analyses the economic social, legal, demographic, and regulatory factors that affects the operations of the coffee chain. This is a discussion of how the company has applied the Marketing Mix and the implications of the foreign markets it has entered recently.
Apple has been one of those companies that could successfully shift their business with time. Established in the year of 1976 by two college dropout friends named Steve Jobs and Steve Wozniak on April 01 at the family garage, Apple drew huge attention within few years of its
The researcher analyzes the resources and competencies of Starbucks along with its strategic positioning. He concludes by highlighting the overall finding and making recommendations accordingly. The primary data has been gathered through a face to face interview with a floor manager of a Starbucks store.
19 pages (4750 words)Case Study
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