STARBUCKS COFFEE

1
STARBUCKS COFFEE
STRENGTHS
WEAKNESSES

• Weak Compliance Function
• Narrow Product Mix
• Low Employee Productivity

• Brand Image
• Strong Financials
• Large Scale of Operations

THREATS
OPPORTUNITIES

• Entry Into New Markets
• Hear Music Label
• Growing Specialty Coffee Market

• Intense Competition
• Volatile Coffee Prices
• Forbiden City Controversy

2
STRENGTHS

• Brand Image
• Global reputation
• Interbrand valued the Starbucks name at 3,099
  MM.
• Innovative and cost effective marketing
  strategies
• Strong Financials
• 24 revenue growth over past 5 yrs.
• Boosted investor confidence, helps carry out
  plans
• Large Scale Of Operation
• 13,000 locations in 39 countries
• Largest premium Coffee supplier (7.8 B vs. 0.2B
  2 Green Mountain)

3
THREATS

• Intense Competition
• Threaten market share
• Numerous competitors in specialty coffee beverage
  market
• Competitors include supermarkets, donut shops,
  etc.
• Volatile Coffee Markets
• Risks weather, political and economic conditions
• Increase in market price or decrease in
  availability
• Forbidden City Controversy
• Store in Forbidden City in Beijing has resulted
  in negative publicity
• Appears culturally insensitive