Starbucks Risk Assesment

Contents
1. Launch of a new product/service 2
1.1 Flowchart for launch of a new product/service 2
2. Reasons for a Failed Product Line 2
2.1 Adverse Environment Conditions 2
2.1.1 Industry Competition 2
2.1.2 Political Implications 2
2.1.3 Economic Events 2
2.1.4 Evolving Social Factors 2
2.2 Error in forecast of consumers’ response 2
2.2.1 Incomprehensive Market Analysis 2
2.3 Ineffective Product Launch 2
2.3.1 Wrong Timing 2
2.3.2 Unprofitable Product 2
2.3.3 Inadequate Support 2
3. SWOT Analysis 2
3.1 Strengths 2
3.1.1 Wide range of products sold through numerous locations 2
3.1.2 Strong Brand Equity 2
3.1.3 Excellent Research and Development capabilities 2
3.1.4 Relationships with established players 2
3.1.5 The Starbucks Experience 2
3.2 Weaknesses 2
3.2.1 Criticism and controversies dilute brand value 2
3.2.2 Lack of Diversification 2
3.2.3 Product recalls affect margins and brand image 2

3.3 Opportunities 2
3.3.1 Growth through acquisitions and partnerships 2
3.3.2 Introduction of Starbucks VIA coffee essence in Japan and China 2
3.3.3 Rapid expansion in China and entrance into a new market – India 2
3.4 Threats 2
3.4.1 Rising prices of raw ingredients 2
3.4.2 Increasing health consciousness among Americans could affect demand 2
3.4.3 Increasingly stiff competition from other giants like McDonalds and Dunkin Donuts 2
4. Emerging/Current Trends 2
4.1 Health-conscious customers 2
4.2 Brand erosion due to changes in pricing and new product offerings 2
4.3 Strategic alliance with Green Mountain Coffee Roasters 2
4.4 Implication for strategic objectives and strategy formulation: 2
5. Risk prioritization for Starbucks 2
5.1 Risk of losing   market share due to stiff competition 2
5.2 Commodity price risk 2
5.3 Currency risk 2
5.4 Supply chain disruption risk 2
5.5 Risk of changing consumer preference 2
5.6 Risk of failure and breach of security of IT systems 2
5.7... [continues]

Read full essay