Starbucks Corporation Situation Analysis and Swot

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Starbucks and its Environment
Starbucks extends their coffee experience to everyone: kids, teenagers and adults. Part of their success comes from their ability to create new products that fit the culture of the country. In Japan, for instance, Starbucks launched green tea lattes, which later became popular in other countries (Allison). Starbucks is well established in countries like Canada, Japan, and the United Kingdom. In the US alone, Starbucks sells 4 million cups of coffee per day (Horovitz). Their products and services have transformed the way customers view coffee. Changing the way customers order, Starbucks makes it very chic to purchase custom drinks. Starbucks is like no other coffee shop: the dimmed lights and contemporary background music appeal to many customers. Offering free Wi-Fi, Starbucks provides customers with an alternative study/work space. They also provide kid-friendly drinks and sizes to make Starbucks a family-friendly place. As an ―embedded brand‖ (Hoover), Starbucks does not need to rely heavily on advertisements to attract customers. Customers are loyal to Starbucks because of its friendly and consistent customer service. Company/Corporate Partners

One of the fastest growing chains in the world, Starbucks is a multination corporation that operates in over fifty countries. The company has created a brand of passion, relaxation, and great tasting specialty coffee. In partnering with many book and music companies, Starbucks has made itself appealing to many different demographics. The company started in 1971 and went public in 1985. It is currently traded on the NASDAQ Market and is a Fortune 500 company (US Securities and Exchange Commission, 1). The Starbucks mission is to "inspire and nurture the human spirit—one person, one cup and one neighborhood at a time" (Starbucks Corporation 2010). They work to achieve their mission by being customer-oriented, community-driven, passionate, and caring. The Starbucks culture is quite refined, catering to the upper-middle class citizen who enjoys a friendly and calm atmosphere. Starbucks obtains customer loyalty through fantastic customer service and well-made products. This combination has created consumers willing to spend over $10,000 per year on coffee. To maintain its success, Starbucks follows six guiding principles: providing a work environment which fosters respect and dignity, embracing diversity in business, applying the highest standards in coffee production and delivery, developing customer relations, contributing to the community and environment, and maximizing profits (Starbucks Corporation 2010). Starbucks is working with several partners to enhance brand equity and expand sales channels and their marketing network. Perhaps different from their rivals, Starbucks strategically refers to all employees as ―store partners‖ who can acquire company shares. The company provides health care benefits to both part-time and full-time store partners even during the recession (―Starbucks Corporation Fiscal 2009 Annual Report‖, 4). Starbucks strives to foster employee loyalty and well being, as happy ―store partners‖ help to build a better experience for customers. Their efforts also help to ensure that their employees’ behaviour is consistent with company goals. A large part of the company’s success is the result of working with business partners around the world. For instance, Starbucks is partnering with Pepsi-Cola and Kraft for the manufacturing and distribution of bottled coffees and teas, such as Frappucino beverages and Starbucks DoubleShot. Playing an essential role in the Starbucks operation, they make up 23% of Starbucks’s specialty revenue (―Starbucks Corporation Fiscal 2009 Annual Report‖, 13). In another example, Starbucks is now working with Unilever to manufacture, market, and distribute Starbucks super-premium ice-cream products in the US. In addition, Starbucks is a 50% equity investor in a joint venture between The...
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