Case Analysis Of Starbucks

Starbucks Corporation is a coffeehouse chain that began in Seattle in 1971. Since that time, Starbucks operations have grown and there are now over 22,000 retail stores throughout 67 countries. Starbucks strives to offer customers a comfortable, “home-like” environment while remaining conscious of ethical behaviors and social responsibility. It can be argued that Starbucks dominates the coffeehouse market, and much of this may be due to a grand strategy with a focus on growth. Using a growth strategy, Starbucks attempts to increase its market share and revenues by increasing the number of its stores and the number of locations it serves. So far, Starbucks has enjoyed much success with this strategy.

One of the areas in which Starbucks

Starbucks has many competitors in this field including eateries, retail stores, and fast food chains. Its primary competitors, however, include Dunkin’ Donuts, McDonald’s, Krispy Kreme and Keurig. (Yahoo! Finance, 2015). Starbucks attempts to get a leg up on these competitors by differentiating their products and offering higher quality drinks and snacks than do many of their competitors. While the high quality of these items drives up the price of the goods, it is apparent that the customer base is willing to pay the additional price for Starbucks’ offerings.

Though Starbucks has, thus far, been quite successful, it is important to note that every company has strengths and weaknesses, opportunities and threats. The trick is to properly identify, analyze and acknowledge these aspects to help companies identify where they stand and how best to take advantage of their position. A SWOT analysis of Starbucks may include the following:

• Strengths

• Differentiates by offering high quality food and drink to consumers.

• Starbucks stores are often viewed as a “home-like” environment where customers can go to relax.

• The Starbucks brand is recognized globally.

• Starbucks strives to place stores in prime locations with high traffic.

• Starbucks is a socially responsible company that is committed to the well-being of communities and the