Starbucks Executive Summary

1625 Words 7 Pages
SWOT Analysis
An extensive analysis of a company’s internal environment ensures that the company is aware of its strengths and weaknesses and can build on available opportunities and design risk mitigation measures to avert the impact of any threats (Helms & Nixon, 2010). According to Sholihah, Ali, Ahmed, and Prabandari, 2016, the internal analysis entail the strengths and weaknesses, whereas the external analysis involves the opportunities and threats. Below is a summary of Starbucks SWOT analysis.
Strengths
• A well-managed brand portfolio.
• Increasing profit and revenue base.
• A world market leader in the retail coffee business.
• Customer focused.
• Growth and presence in developing economies. Weaknesses
• Basing half of its revenue
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In its quest to target all facets of everyone – coffee needs, food needs, and entertainment – the company lost what made it unique in the first place. Therefore, a bigger market is not synonymous with a bigger and better brand but rather a uniquely targeted market. Moreover, a company cannot promise to believe in everything. It is vital to have a unique tagline and work towards achieving the best around it. For instance, it can be worrying to promise a better experience where at the same time you claim to offer cheaper and faster services. Thus, if the promise is a unique and better experience, then revolve the company strategy around it. Further, it is essential to for a company to have a concrete place and positioning strategy as a planned expansion strategy guarantees a smoother approach to gaining a better market share. Resources – money, staff, time, etc. – are limited. At the fall of the share price by close to 80%, Starbucks as a brand was exposed to the volatility of its imagination that its resources are invincible. The internal and external analysis of Starbucks portrays a stable company with enough resources to maintain its market share. For instance, a growth of $10 billion dollars in 10 years is massive for any company. However, Starbucks cannot rest easy. There are environmental and political threats that can fast bring down he company fortunes. Furthermore, the competitors are ever-reviewing their approaches, and thus, Starbucks should be innovative and inventive in the souring of raw materials, maintain its brand recognition and customer experience, tapping into new markets, and adopting appropriate technology for direct sales and

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