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    Swot Analysis of Starbucks

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    LUJING SUN
    Starbucks uses a TOWS analysis to evaluate its strategies. A SO strategy would be to use its global brand and customer loyalty to expand into new countries and introduce innovative products. A ST strategy would be to diversify products to retain its market position against competitors and shift operations to areas with more growth potential. A WO strategy is to take advantage of its market share outside the US through market expansion and product adaptation. A WT strategy is to diversify its beverage line and products without dairy to avoid threats from rising costs.

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    Swot Analysis of Starbucks

    Uploaded by

    LUJING SUN
    824 views17 pages
    Starbucks uses a TOWS analysis to evaluate its strategies. A SO strategy would be to use its global brand and customer loyalty to expand into new countries and introduce innovative products. A ST strategy would be to diversify products to retain its market position against competitors and shift operations to areas with more growth potential. A WO strategy is to take advantage of its market share outside the US through market expansion and product adaptation. A WT strategy is to diversify its beverage line and products without dairy to avoid threats from rising costs.

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    swot analysis of Starbucks

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    Starbucks uses a TOWS analysis to evaluate its strategies. A SO strategy would be to use its global brand and customer loyalty to expand into new countries and introduce innovative products. A ST strategy would be to diversify products to retain its market position against competitors and shift operations to areas with more growth potential. A WO strategy is to take advantage of its market share outside the US through market expansion and product adaptation. A WT strategy is to diversify its beverage line and products without dairy to avoid threats from rising costs.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    824 views17 pages

    Swot Analysis of Starbucks

    Uploaded by

    LUJING SUN
    Starbucks uses a TOWS analysis to evaluate its strategies. A SO strategy would be to use its global brand and customer loyalty to expand into new countries and introduce innovative products. A ST strategy would be to diversify products to retain its market position against competitors and shift operations to areas with more growth potential. A WO strategy is to take advantage of its market share outside the US through market expansion and product adaptation. A WT strategy is to diversify its beverage line and products without dairy to avoid threats from rising costs.

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    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 17

    TOWS MATRIX

    STARBUCKS

    Speakers Wang Jia Sun Lujing


    Li Yuan

    Index

    Introduction
    TOWS analysis

    SO Strategy

    WO Strategy
    ST Strategy

    WT Strategy

    Conclusion

    Introduction
    Starbucks Corporation is an
    international coffee and
    coffeehouse chain based
    In Washington.
    Starbucks is the largest coffeehouse
    company in the world, with about 17,000
    stores in 50 countries.

    TOWS analysis is variant of the classic business tool,


    SWOT Analysis.
    It is a tool for situational analysis.

    Strength

    Weakness

    Look for opportunities


    Look for strategies which
    that make use of strength address weakness

    Look for strategies which


    use strength to avoid
    threat

    Look for strategies which


    avoid threats and minimize
    the effects of weaknesses

    Strengths
    1. NO.1 global coffee brand valued at $4
    billion
    2. Excellent products and services
    3. Largest coffeehouse chain in the world
    4. Profitable organization with healthy
    financial records
    5. Respected employer and good employee
    management

    Weaknesses
    1.High product pricing
    2. Prices continually rising
    3. Depending on one main
    competitive advantage coffee
    (Needs more various products and customer bases)

    Opportunities
    1.
    2.
    3.
    4.

    New products and services


    Expansion of its global operations
    Extend supplier range
    Focus on emerging economies

    Threats
    1. Increasing number of competitors
    2. Rising cost of raw materials
    (coffee beans, dairy products, etc.)
    3. Saturated markets in the developed
    Economies
    4. Possibility of substitute

    SOstrategy
    1- The major strength of Starbucks is its global presence
    and its strong customer loyalty which helps to increase its
    market share and growth in the coffee market.
    2- By constantly introducing new innovative products in
    each store, Starbucks can continue to increase its
    revenue by expanding in other countries as well.
    3- Starbucks is well known for its quality and fast services
    throughout the world, in order to upgrade its services
    according to customers requirement is to come up with
    more technological advancements.

    Potential

    takeover or Merger in Austral

    Massive expansion for multinational company


    Takeover of a local business saves the time for initial campaign
    and office setup
    It does not increase the number of competitors in the market and
    took advantage of the customer loyalty of the business being taken
    Starbucks can seek counseling on the matter of a potential
    merger with its competitors since it could be its opportunity in
    exploring the Australian market.

    ST

    strategy

    1- One of the major threats that Starbucks could face is

    against its competitors. For this purpose, Starbucks should


    innovate or diversify its products more often to retain its
    position in the market. Frappucino light blended coffee is
    one of its examples.
    2- Due to economic/political instability in some countries
    that affect the business operations. However with its strong
    global image, Starbucks can shift its operation elsewhere
    where it seems to have more
    potential growth. Another
    way is to change their
    market strategy by reducing their
    prices to penetrate in the foreign market.

    WOstrategy
    1- As Starbucks has large market share of about
    85% in the US market, they must take advantage
    of their market expansion to increase its market
    share outside its domestic market.
    2- If Starbucks face difficulties to operate
    internationally, they must take advantage of their
    products and adapt them according to the
    consumers demand and environment through
    product diversification or market extension
    strategy.

    New business model


    Diversify the distribution channel in Australia
    Starbucks usually runs in the form of storefront coffee
    shop, if it can distribute service in a more flexible way
    such as selling coffee on a small coffee van

    Creative Starbucks image


    Starbucks can try to release new packing, canned
    coffee or bottle with stylish Starbucks logo which
    already prevailed in most Asian countries and America

    WTstrategy
    1- Starbucks when faced with political/economic
    instability outside the domestic market (US)
    needs to extend its product line in beverages.
    2- To avoid this threat such as rise in the cost of
    dairy products is to diversify its products that do
    not include any dairy items.

    Over weighting in the American market


    Products innovation
    New business model

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