Professional Documents
Culture Documents
Recommendations
Recommendations
Innovate Tea and Fresh Juice products mix. They should build up these products along the same
line of their core coffee products.
Transfer its core competencies and capabilities country to country and then gradually build
profit drivers in several countries as it continues its global expansion in an organic way.
Further build and retain customer loyalty, by building on beta concept of on-the-go home
delivery.
Tailor its menu’s and expand to give healthier product offerings in its mix.
Make significant investments in advertising and marketing initiatives in the face of increased
competition in the market.
Cater an event for all aspiring barista and present workers of Starbucks to have a formal training
about their Job.
Another growth sector is its packaged coffee packets and iced beverage products. Starbucks
should build better relationships with big box retailers to get premium shelf space and increase
the efficiency of this distribution channel.
Mobile apps business building to stream lining ease of use and payment process which would
help drive more customers, decrease wait time in stores and increase efficiency. Integrating
Starbucks loyalty program with the mobile application would also be recommended.
Starbucks market should focus on getting additional penetration into untapped rural markets.
Coffee beans are a significant input into Starbucks value chain and there have been wide
fluctuations in the market prices of high quality coffee beans. Starbucks could mitigate this price
volatility risky by implementing an effective hedging strategy like future contracts to lock in their
estimated quantity inputs at a low swing price so that the future costs can be managed to a
greater extent.
- Economic Decline - Starbucks will use this opportunity to right-size its store footprint, much like it did
in 2008. That would look like closing underperforming stores, and opening smaller, more targeted, and
digitally-focused locations in the future.
1 (Most Risky)
2 (Often Risky)
3 (Sometimes Risky)
4 (Rarely Risky)
5 (Least Risky)
1 (Most Costly)
2 (Often Costly)
3 (Sometimes Costly)
4 (Rarely Costly)
5 (Least Costly)
1 (Least Beneficial)
2 (Rarely Beneficial)
3 (Sometimes Beneficial)
4 (Often Beneficial)
5 (Most Beneficial)
5 (Easiest to Implement)
Internal Environment
Strengths Weaknesses
Strong Market Position and Global Brand Expensive Products
Recognition Self-Cannibalization through
Products of the Highest Quality overcrowding:
Location and Aesthetic appeal of its Overdependence in the United States
Human Resource Management market
Goodwill among consumers due to Social Negative large corporation image
Responsibly Initiatives American/European coffee culture clash
Use of Technology and Mobile Outlets with that of other countries
Customer base loyalty
External Environment
Opportunities Threats
Expansion into Emerging Markets Increased Competition
Expanding Product mix and offerings Price Volatility in the Global Coffee
Expansion of retail operations Market
Technological advances Developed Countries Market Saturation
New distribution channels Developed Countries Economy
Brand extension Changing Consumer tastes and lifestyle
choice
Strengths:
Strong Market Position and Global Brand Recognition
Products of the Highest Quality
Location and Aesthetic appeal of its
Human Resource Management
Goodwill among consumers due to Social Responsibly Initiatives
Use of Technology and Mobile Outlets
Customer base loyalty
Weaknesses:
Expensive Products
Self-Cannibalization through overcrowding:
Overdependence in the United States market
Negative large corporation image
American/European coffee culture clash with that of other countries
Opportunities:
Expansion into Emerging Markets
Expanding Product mix and offerings
Expansion of retail operations
Technological advances
New distribution channels
Brand extension
Threats:
Increased Competition
Price Volatility in the Global Coffee Market
Developed Countries Market Saturation
Developed Countries Economy
Changing Consumer tastes and lifestyle choice