CAPSTONE WEEK 10 ASSIGNMENT
BUS 499 CAPSTONE WEEK 10 ASSIGNMENT
SWOT analysis of Starbucks
SWOT analysis strategy
Profitability strategy
Communication plan
Corporate social responsibility
In this presentation, I am going to carry out a SWOT analysis of Starbucks company, detailing its strengths, weaknesses, opportunities and threats. Also, I will analyze the strategy that Starbucks can use to enhance its strengths or reduce the threats. I will also carry out the profitability strategy and communication plan that the company can use to reach out to all of its stakeholders
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SWOT ANALYSIS
Strengths
Starbucks has the strongest brand image on the market
In terms of financial performance, it’s doing well.
It has increased the number of stores it operates.
Has a global supply chain network.
Has purchased a number of different businesses.
Has moderately broadened its scope.
Starbucks has strengthened its brand image. This has made it to become so popular increasing its size and the number of loyal customers. This company has a brand value of $11.7 billion according to the 2019 interbrand ranking. In terms of financial performance, the company has an annual revenue of $26.5 billion making a total profit of $3.6 billion in the fiscal year 2019.
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SWOT ANALYSIS cont…..
Weaknesses
Starbucks charges a lot of money.
Has great imitability of items
Most items have generalized standards
Avoids many European tax
Procurement practices that are immoral
Starbucks company charges high prices for its products and this is making its customers to shift to other companies in the same industry. companies in the same industry like McDonald and some other coffee outlets are relatively cheaper as compared to Starbucks. Another drawback for this company is its imitability. This company does not own most of unique products in the market. It imitates most of other companies hence making it not to stand out in uniqueness.
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SWOT ANALYSIS-Opportunities and Threats
Opportunities
Resulting from the company’s growth into new markets.
Increased product specialization and a wider range of choices
The introduction of new products
Starbucks company has opened up stores in developing markets to expand its sales volume. It has opened up stores in countries such as China, India and some regions of Africa. This is a great opportunity for the company. Also, this company has diversified its business operations to improve its overall revenue growth opportunities. (Week Low, 2020)
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Threats
Vendors of cheap coffee on the market.
High competition from other vendors
A large number of huge chains present on the market
Some other businesses are opening up such as Macdonald’s Caribou coffee company, Costa coffee and Nestle
The greatest for Starbucks coffee company is the high competition in the industry. there are a number of companies that are making the same products hence posing a stiff competition to Starbucks. This will force Starbucks to invest more in the quality of coffee produced as well as reduce the prices for its coffee to attract more customers as well as maintaining the customers that it has. Some other businesses are opening up such as Macdonald’s Caribou coffee company, Costa coffee and Nestle. These are posing a stiff competition to the company making it to lower its prices relatively in order to compete with such businesses as they sell their coffee products at a relatively lower price as compared to that of Starbucks. (Khushman, 2019)
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COMPETITIVE STRATEGY
A wide range of distinctions are made
Utilization of market development
Development of new products is one method employed.
Invention and improvement of products
Taking advantage of a shift in customer tastes
Starbucks company uses market development as a strategy to enhance intensive growth. This strategy helps the business growth by generating revenues in new markets or in new segments of the market by offering the current product mix of the company such as food and beverages. (Clements, 2019)
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PROFITABILITY STRATEGY
Pricing is based on value rather than cost.
Use of customer and market research
Value-based pricing can be used.
Marketing that focuses on the needs of the customer
Increasing the quality of products and services
Value based pricing is the number one strategy that Starbucks has employed in order to improve its profitability. Use of research and customer analysis is one other strategy that is very effective for Starbucks, the company finds out what the customers need and come up with products that suits their requirements hence increasing their sales which promotes profitability of the company. (Oliveira, 2020)
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COMMUNICATION PLAN
e-mails are used to communicate with workers
Communicating with customers using social media
Using official letters to communicate with the company’s leadership.
The use of billboards to communicate with the general audience.
Starbucks company will make use of their corporate emails to communicate to the employees about the profitability strategies that are to be used in order to improve the profits of the company. Social media is also a good communication tool that this company will use to create more awareness about the strategies to the customers and to the employees.
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CORPORATE SOCIAL RESPONSIBILITY
community
Non-profit organizations and community stores work together to benefit the community.
Allows young people to gain experience through training
Sourcing that is in accordance with moral principles
Products are manufactured and acquired in a manner that is both environmentally and socially responsible.
Reduces environmental effect by using a thorough strategy.
Starbucks ensures that it impacts the local community in whatever area that it opens a store. For instance, it opens up community stores that in turn partners with the local non-profit organization to help the local people by providing required services. . (Blair, 2019)
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REFERENCES
Week Low, P., & Recommendation, E. M. C. (2020) Starbucks Corp (NASDAQ: SBUX).
Blair, T., Crabbe, K., Duong, M., Lee, W., Orcutt, M., & Vigil, A. Business Analysis and Recommendations: Taste of Philly Lakewood.
Clements, M. (2019). Strategic Audit: Starbucks.
Oliveira, S. I. S. D. (2020). Growth is not over for Starbucks, it is empowered by digital and geographic expansion (Doctoral dissertation).
