* Premium products
Customers are willing to pay this high price in order to receive The Starbucks Experience, in which “we’re not in business of filling bellies, we’re in the business of filling souls”.
* Anytime, anywhere
By opening new shops, Starbucks allows people to reach their stores anytime, in the shortest distance. It seems that there are not many places left without Starbucks. * Food offerings:
Starbucks add in their menu everything from Krispy Kreme doughnuts and Fresh Fields gourmet sandwiches to Greek pasta salads and assorted snacks. * Welcoming atmosphere:
“When our customers feel this sense of belonging, our stores become a haven, a break from the worries outside, a place where you can meet with friends. It’s about enjoyment at the speed of life – sometimes slow and savored, sometimes faster. Always full of humanity.” (source: starbucks.com)
2. Evaluate the strengths, weaknesses, opportunities and threats of Starbucks.
* It’s a brand built on a well-known reputation * Monopolistic market * High market share
WEAKNESSES: * Expanding new stores in international market costs a lot of money * High priced product * Lack of focusing on worthy expansions
OPPORTUNITIES: * Created its own record label * Diverse retail channels * International markets will be a potential expansion * Partnered with several firms to gain benefit
THREATS: * Copy cats such as Caribou Coffee, Costa Coffee and Coffee Republic * A popularity of Starbucks’ coffee makes people wonder whether or not a product they receive is in a premium quality
How are the trends of health concerns, the ageing population and anti-globalization likely to affect the continued growth of the company? * Produce product that less caffeine or none at all * Ageing