Internal and External analysis of Starbuck
Internal and External analysis of Starbuck
Internal Analysis
The internal analysis is used as a framework to help develop its overall corporate, marketing or product strategies and how the resources assist to survive in this competitive market.
1.Resources and Competencies (R&C)
Threshold R&C
Tangible – 19.767 stores in 62 countries with182,000 employees , Hi-tech coffee machines and equipment, $ 14.9bn net-revenue(Starbuck Annual Report-2013)
Intangible – Techniques to brew coffee, Build relationship with employee, suppliers and customers
2.Distinctive R&C
Tangible – Large number of store outlets, Effective design of store, High quality products, Diverse product mix, Located in high-traffic and high-visibility areas, Customer loyalty cards
Intangible – Rank 5th in the world most admired company (fortune, 2014) [http://fortune.com/worlds-most-admired-companies/google-3/, accessed on 13.12.2014] Royal and Strong Customer base, Reputation for high-quality coffee, Value share of 40% while Costa coffee (4%) and McCafe (3%)3
3. [Starbuck Crop in Consumer Foodservice (World), Sep 2014, Passport)
3. Dynamic R&C
Tangible – Strong revenue growth - non-GAPP operating income of $2.5 billion, Store design due to local place and promote store as a “third place”
Intangible – Highly trained and Qualified Staff, First-mover advantage, “one person, cut, neighborhood at a time” (Starbuck.com), First-Mover Advantage, Strong Leadership from CEO and President, Invest in R & D to adapt with the changing trend –Expand consumer packaged goods segments.
I believe that the main driver of success for Starbucks in terms of distinctive and dynamic are high customers loyalty, reputation of its quality and strong financial position will support the Starbucks operation to outperform and survive in this challenging market.
VIRO Framework (relationships with coffee farmers-SCA – have farmer support centers in 6countries to improve coffee quality and
Internal Analysis
The internal analysis is used as a framework to help develop its overall corporate, marketing or product strategies and how the resources assist to survive in this competitive market.
1.Resources and Competencies (R&C)
Threshold R&C
Tangible – 19.767 stores in 62 countries with182,000 employees , Hi-tech coffee machines and equipment, $ 14.9bn net-revenue(Starbuck Annual Report-2013)
Intangible – Techniques to brew coffee, Build relationship with employee, suppliers and customers
2.Distinctive R&C
Tangible – Large number of store outlets, Effective design of store, High quality products, Diverse product mix, Located in high-traffic and high-visibility areas, Customer loyalty cards
Intangible – Rank 5th in the world most admired company (fortune, 2014) [http://fortune.com/worlds-most-admired-companies/google-3/, accessed on 13.12.2014] Royal and Strong Customer base, Reputation for high-quality coffee, Value share of 40% while Costa coffee (4%) and McCafe (3%)3
3. [Starbuck Crop in Consumer Foodservice (World), Sep 2014, Passport)
3. Dynamic R&C
Tangible – Strong revenue growth - non-GAPP operating income of $2.5 billion, Store design due to local place and promote store as a “third place”
Intangible – Highly trained and Qualified Staff, First-mover advantage, “one person, cut, neighborhood at a time” (Starbuck.com), First-Mover Advantage, Strong Leadership from CEO and President, Invest in R & D to adapt with the changing trend –Expand consumer packaged goods segments.
I believe that the main driver of success for Starbucks in terms of distinctive and dynamic are high customers loyalty, reputation of its quality and strong financial position will support the Starbucks operation to outperform and survive in this challenging market.
VIRO Framework (relationships with coffee farmers-SCA – have farmer support centers in 6countries to improve coffee quality and