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Transcript of SWOT ANALYSIS
Industries served :
Geographic areas served :
$ 13.29 billion (2012)
$ 1.38 billion (2012)
Main Competitors :
McDonald's Corp., Dunkin' Brands Group, Inc., Nestlé S.A., Green Mountain Coffee Roasters, Costa Coffee, Caribou Coffee Company.
No. 1 brand in coffeehouse segment :
valued at $4 billion, 36.7% market share in the United States and has operations in over 60 countries.
Ranked 91st in the best global brands of 2013.
High quality value
The Starbucks experience
: sophistication, calmness and style, Wi-Fi
Employee managment :
treats employees as partners
Location and Aesthetic appeal of its Stores
Customer loyalty :
Starbucks Rewards programs and Starbucks Card, the Starbucks App.
Goodwill among consumers due to Social Responsibly Initiatives:
Starbucks is the premier roaster, marketer and retailer of specialty coffee in the world, operating 20,000 coffeehouses in more than 60 countries. It is the no.1 brand coffeehouse chain in the world.
Starbucks generates 85% of revenues from US, its domestic market
Difficulties to expand :
face cultural differences
in emerging countries
Product pricing :
great customer experience but high prices
Coffee beans price is the major influence over firm’s profits
Negative large corporation image
Expansion to emerging economies :
Russia, China and India, in which Starbucks has comparably only modest number of restaurants
Increase product offerings :
project on wine and beer, adding some new products and reaching broader customer group.
can help Starbucks improve its services
New distribution channels :
new delivery system called Mobile Pour. Great opportunity for the future by expanding their end product distribution systems and could drive more revenue.
Brand extension :
Starbucks carries a powerful brand image and it can leverage it to extend into horizontal lines and product diversification.
Rise in dairy and beans prices :
the profits of the compagny highly depend on thoses product prices and Starbucks can't control them.
Emerging competition especially in the domestic market :
Starbucks must be competitive on all levels to retain its position.
Saturated markets in the developed economies
Changing Consumer tastes and lifestyle choices
: The risk of coffee culture being just a fad
Trademark infringements: O
ften involved in cases over illegal use of its trademark, which is costly and detrimental for Starbucks
The political, economic and weather conditions
in some countries outside the domestic market like India can adversely affect the business
Bloomberg Buisness Article Starbucks CEO Says Japan Disruption Tempered by Chain’s Size by Matthew Townsend and Leslie Patton
March 30, 2011 — 10:30 PM CEST
Strategic Analysis Of Starbucks Corporation By: Nithin Geereddy (ID: 80842082)
MBA TUTORIALS.com TOWS Analysis of Starbucks May 12, 2013
December 4, 2014 Company
Starbucks Details Five-Year Plan to Accelerate Profitable Growth at Investor Conference
Strenghts / Opportunities
Strenghts / Threats
Weaknesses / Opportuities
Weaknesses / Threats
Main political factor is about sourcing the raw materials
Take the attention of politicians in source country : the company has to adapt to the social and environmental norms, laws and regulation.
Economic recession is the prime external economic driver for Starbucks
The company has to deal with rising labor and operational costs
Falling profitability = stress
What affects the company :
Local currency exchanges rates
Local economics environment in different market
Starbucks wants take benefits of the emerging mobile wave
Starbucks have a partnership with Apple to bring an app based on discount coupons
Wi-Fi in all outlets --> Added value
The consumer experience is different and bettered
Many Starbucks businesses practices concern activities and international advocacy groups
The company has to take environemental issues in a serious way in order to hold consumer trust
Directly affected by disasters in countries producing coffee beans, global warming and other environmental issues in a global way
They should be careful about not violating the rules and laws in countries where they set up
They must be aware of policies and regulations established by health autorities on caffeine consumption
S2/O3: Technology advancement : a tool to improve quality of Starbucks products and services
S1/O2: Use dominant position, brand image and consumer loyalty to accomplish products diversification and bring the brand to a new level
S5/O1: Rely on location and aesthetics stores to conquer emerging markets
S6/T3: Since markets in developed countries are saturated, Starbucks must base its strategy on customers loyalty in these places. Change price strategy to penetrate the foreign market.
S1/T6: With its dominant position in the coffee market, Starbucks should be able to innovate or diversify its products more often to retain its position in the market
Expand customer base to include buyers from the lower and the middle income tiers
Starbucks has to be aware of :
Changing family patterns in USA & Europe
Changing consumers preferences
Changing work patterns
W1/O1: Starbucks has to expand to emerging markets in order to diversify the origin of its revenues
W2/O2: To achieve expansion in markets where culture is an obstacle, Starbucks must diversify and adapt its product range.
W1/T2: Due to Starbucks' dependance on the US market and the increasing competition there, Starbucks must increase its revenues abroad
W3/W4/T1To avoid dairy products and beans rising price threat Starbucks must diversify its products and do not include any dairy items certain range.
Teresinha Uhlefelder Alvares Ribeiro