Swot Analysis : Starbucks Coffee Essay examples

1671 Words Sep 2nd, 2016 7 Pages
1 Competitive Strategy (5 – 6pages) – Vaishali
1.1 Porter 's Five Forces
This Michael Porter 's five force analysis of Starbucks coffee shows the intensity of the five strengths of the firm and the bases of these powers. Starbucks coffee 's prosperity shows its viability tending to these outside elements in its industrial surroundings. However, this five forces investigation highlights current industry conditions that force present and developing concerns significant to Starbucks coffee 's business. These five forces have different intensities or powers on the basis of Starbucks’ market position. Following are the five forces of Michael Porter 's model (Marks & Samuelson, 2016).
(1) Competitive rivalry or competition (strong force)
(2) Threat of substitutes or substitution (strong force)
(3) The bargaining power of buyers or customers (strong force)
(4) Threat of new entrants or new entry (moderate force)
(5) The bargaining power of suppliers (weak force)

1.1.1 Threat of Entry
According to the five forces analysis model, the threat of entry force refers to the potential effect of new players in the industry and is a moderate-to-weak market force (Maverick, 2015). For Starbucks coffee, the following external factors contribute to the moderate effect of the threat of new entrants; the moderate cost of doing business and supply chain costs which are both moderate forces and the high cost of brand development which is a weak force (Greenspan, 2015).
Greenspan (2015) specified…

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