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Starbucks Case Study - Strengths and Weaknesses


            According to the case study, Starbucks has been recognised as one of the fastest – growing brand in 2005. During long time period, up until now, Starbucks is significantly becoming the leading company in retail coffee market. Now, it is interesting to conduct a comprehensive SWOT analysis of Starbucks. SWOT is regarded as a key tool that help companies to discover their advantages and be able to encounter with disadvantages through the analysis of strengths, weaknesses, opportunities and threats. .
             Strengths .
             The first strengths will be strong market position and brand recognition. According to the figure in the case study, with more than 5689 outlets in 28 countries, Starbucks has been spreading their market across the world. In addition, Starbucks seems to be successful in creating global brand recognition with a number of rewards. These factors allow Starbucks to attract huge number of consumers, expand into international markets and increase the higher growth in the market share. The second one is high-quality product. Starbucks make a commitment that their raw material, coffee bean are from the best quality. .
             Thirdly, as mentioned in the case study, they are take advantage of clustering stores, they are willing to pay highest amount to put their sores close together and prevent competitor' stores from their areas. For example, Starbuck pay for empty store so that their rival Tully could not move in. More than that, their stores aim to premium, high traffic, office buildings, city centre and able to appeal customers. Innovation is considered as their next strength. For example, Starbucks often tries their best to think of new activities, satisfy the consumer's need such as providing free Wifi, great music, great service. .
             Furthermore, Starbucks fans tend to be more commitment with their products. For example, in the case study, the Japanese consumer is willing to buy Starbucks drink, even they get the higher price.


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