Starbucks is a leading coffeehouse which have outlets globally. The following is SWOT analysis of Starbuck.
Every business experiences challenges and Starbucks is no different despite its strong image internationally.
Development of alternatives
Business diversification is the best opportunity for Starbucks to grow its revenue both locally and internationally. Starbucks has a strong image and good reputation and therefore introduction of new products to its menu may not be a problem (Mason et al., 2017). The company is accepted internationally and so are products. The new products only need to be customized to in a way that the customers’ preferences are met. Diversification will attract more customers as they will be willing to try out the new products. It will also win customer loyalty since there are satisfied with the company’s products and services. Starbucks has an extensive supply chain which would push the diversification agenda further. This means the company is in a position to source needed materials for the new products on time and competitive prices. Employees shall welcome diversification warmly since they are treated in the right way. Happy and satisfied employees translate into a productive company.
One of the major recommendations for Starbuck is investment in technological innovations and be innovative. It will enable the company to cope with the growing imitation of its products and services, and competition. It is also recommendable for Starbucks to lower the products’ prices so as to lure more clients and ensure affordability to the larger population (Helms & Nixon, 2010). It would be better if Starbucks implemented branding strategies, marketing and promotional campaigns to increase its acceptability in local markets and avoid negative profiling of the company.
Helms, M. M., & Nixon, J. (2010). Exploring SWOT analysis-where are we now? A review of academic research from the last decade. Journal of Strategy and Management, 3(3), 215-251.
Mason, A., Cole, T., & Goza, N. (2017). Starbucks: A case study of effective management in the coffee industry. Journal of International Management Studies, 17(1), 43-48.
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