Starbucks Case Study

Topics: Starbucks, Coffee, Coffeehouse Pages: 4 (1139 words) Published: September 28, 2005
Case #1- Starbuck's Strategy: It's a Small World After All- Case 2.1

A1. Create a SWAT analysis of Starbucks focusing on its plans for international growth.
1. Strengths
a. Starbucks has obtained a strong brand name over the years.
b. They have obtained a system that works.
•Astounding customer service
•A long range of customer loyalty
•Superior quality
•Good training and management system
•They understand their target audiences.
•They have the resources and money for valuable research.
•Their marketing strategy is magnificent. An example is how they name their coffee Tall, Venti, and Grande. This gives the customer a sense that the product is foreign and exotic. With this in mind, customers are willing to pay the extra money. They want those unique products. (paladn) c.Now with their products sweeping nationwide, Starbucks is able to tie-in products, such as coffee cups and briefcases, to expand their market. d.Starbucks has an incredible distribution system. They now serve coffee at 6,500 stores nation wide. e.The product itself is quality guaranteed. Superior to other competing coffee shops, such as Dunkin Donuts and local coffee houses, following in its footsteps. f.Starbucks has a very atmospheric feeling about it. From the sofas to the classical music, sipping a coffee and reading a book is all part of the Starbucks experience. g.Starbucks has a very interactive website for its customers. "Good information is good business." (paladn) 2. Weaknesses

a. Price may be difficult concerning overseas expansion. The company must focus on what country they are entering and consider lowering prices to fit their economy. b. Some countries perceive the United States as uncivilized country and want nothing to do with American products. Starbuck's must take this into consideration and try to overcome the label of trying to "sell the American culture." (Kurtz 60) c. There is going to be a huge problem when it comes to...
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