This is about Starbucks TOWS analysisThreats.
Opportunities.
Weaknesses.
Strengths.
- Who knows if the market for coffee will of grow and stay in favour with customers, or whether another type of beverage or leisure activity will from 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 poses potential threats.
Opportunities.
- Starbucks are very good at taking advantage of opportunties. In 2004 the company created a CD-burning service in Their Santa Monica (California USA) cafe with Hewlett Packard, Nowhere customers create Their own music CDs.
- New products and-services That cans be retailed in Their cafes, Such as Fair Trade products.
- The company has the opportunity to expand its operations globally. 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.
Weaknesses.
- Starbucks has a reputation for new product development and creativity. However, They Remain Vulnerable to the possibility That May falter Their innovation over time.
- The organization has a strong presence in the United States of America with More Than Their three-quarters of cafes located in the home market. It is argued Often That They need to look for a portfolio of countries, in order to spread business risk.
- The organization is dependent on a main competitive advantage, the retail of coffee. Could this make Them slow to diversify into other sectors Should the need Arise.
Strengths.
- Starbucks Corporation is a very profitable organization, earning in excess of $ 600 million in 2004.The company generated revenue of More Than $ 5,000 million in the Same year.
- It is a global coffee brand built upon a reputation for fine products and services. It has Almost Almost 9000 cafes in 40 countries.
- Starbucks was one of the Fortune Top 100 Companies to Work For in 2005. The company is a Respected That employer values its workforce.
- The organization has strong ethical values and an ethical mission statement as follows, 'Starbucks is committed to a role of environmental leadership in all Facets of our business'.
'Starbucks' mission statement is' Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while We grow. " The Following six guiding principles will of help us measure the appropriateness of our decisions'