1. Sound financial records
2. No. 1 brand best market share in coffeehouse segment valued at $4 billion :
Starbucks profitability has been rising for the past few years and is now 14%. The company also outmatches its nearest competitors with 24.54% return on investment and 29.16% return on equity.
3. Mode of operation
good at investment and cooperation flexible according to the different market situation,
4. The deep cultural connotation
5. New product research and development and innovation
6. Starbucks experience
One of the strongest advantages Starbucks has is the experience it delivers to its customers with perfectly blended coffee, premium music, friendly staff and warm atmosphere, which results in incomparable customer service. Guarantee of product quality and taste.
7. Largest coffeehouse chain in the world
The company operates around 20,000 coffeehouses in 60 countries, making it the largest coffeehouse chain in the world.
8. Employee management
The company offers its employees extensive range of benefits and a pay rate higher than offered by competitors.
1. Coffee beans price is the major influence over firm’s profits. Starbuck’s profitability and its coffee price are largely dependent on prices of coffee beans, which is a commodity and cannot be controlled by Starbucks. Due to hedge funds, weather conditions and many other factors, Starbucks cannot estimate the price of tis coffee and company’s profitability.
2. Product pricing, in china people think it is to expansive. McCafe premium coffee was price lower than Starbucks coffee and was better evaluated.
3. Negative publicity
1. Extend supplier range
2. Expansion to emerging economies
3. Increase product offerings
4. Expansion of retail operations
5. Chinese market
1. The rising cost of raw materials , Rising prices of coffee beans and dairy products
2. Trademark infringements
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