星巴克SWOT分析-英文

SWOT Analysis of Starbucks Given by group Geilivable Group members 刘德欢 0093075 罗睿棋 0093111 周丽丽 0093120 孙玉 0093112 Background Starbucks Corporation SBUX is an international coffee and coffeehouse chain based in Seattle Washington Starbucks is the largest coffeehouse company in the world with 17 009 stores in 50 countries including over 11 000 in the United States over 1 000 in Canada and over 700 in the United Kingdom Starbucks sells drip brewed coffee espresso based hot drinks other hot and cold drinks coffee beans salads hot and cold sandwiches and panini pastries snacks and items such as mugs and tumblers Through the Starbucks Entertainment division and Hear Music brand the company also markets books music and film Many of the company s products are seasonal or specific to the locality of the store Starbucks brand ice cream and coffee are also offered at grocery stores Strengths Starbucks Corporation is a very profitable organization earning in excess of 600 million in 2004 The company generated revenue of more than 5000 million in the same year It is a global coffee brand built upon a reputation for well products and services It has almost 9000 cafes in almost 40 countries Starbucks has a very low rate for the loss of its top managers They give various ideas for their products Starbucks was one of the Fortune Top 100 Companies to Work For in 2005 The company is a respected employer that values its workforce Starbucks product is not just coffee but the experience for coffee atmosphere management soft music warm light and so on Starbucks uses the mode of flexible investments and cooperations according to the different market situations around the world It always uses the direct way to sale its products The organization has strong ethical values and an ethical mission statement as follows Starbucks is committed to a role of environmental leadership in all facets of our business Starbucks always locates in the crowed mal so that it gives the consumers the good coffee as well as the space to have a rest Weaknesses The short of capital Whenever Starbucks plan to open a new shop it would always be put in the most prosperous location of the city Just in Shanghai it needs 2 millions to open a new shop It means that how to solve the demand of capital labor and reserve resources is a big challenge for Starbucks High price The price level of Starbucks is higher than corporations in the same industry It concentrate on developing the high end product and give up the profit from the low income people It will lead a high risk for Starbucks daily operation Because Once High concentration level The organization has a strong presence in the United States of America with more than three quarters of their cafes located in the home market It is often argued that they need to look for a portfolio of countries in order to spread business risk Lack of diversification The organization is dependant on a main competitive advantage the retail of coffee This could make them slow to diversify into other sectors should the need arise Opportunities Starbucks are very good at taking advantage of opportunities In 2004 the company created a CD burning service in their Santa Monica California USA cafe with Hewlett Packard where customers create their own music CD New products and services that can be retailed in their cafes such as Fair Trade products The company has the opportunity to expand its global operations New markets for coffee such as India and the Pacific Rim nations are beginning to emerge Co branding with other manufacturers of food and drink and brand franchising to manufacturers of other goods and services both have potential Starbucks has the courage to try something challenging and innovative for example the construction of the third space taking advantage of e business THREAT After rapidly expanding there exist a potential risk that the burden of set new cooperate chain is heavy At the same time because Franchisee is not allowed operators can t wait for benefits rely on its initial fee There are a lot of competitors in potential and reality What s more no one knows if the market for coffee will grow and stay in favor with customers or whether another type of beverage or leisure activity will replace coffee in the future Starbucks are facing with treats as follows Cost raising Starbucks are exposed to rises in the cost of coffee and dairy products The threat of new enters Since its conception in Pike Place Market Seattle in 1971 Starbucks success has lead to the market entry of many competitors and copy cat brands that pose potential threats Competitors Mainland China market existing Taiwan Shang Dao coffee Japan really pot of coffee and other coffee later into china Starbucks coffee among all as its biggest competitor coffee wars royalties have become inevitable Starbucks mission statement is Establish Starbucks as the premier purveyor of the finest coffee in the world Facing with the competition from the coffee industry the convenience store fast food restaurant and coffee machine Starbucks have a long way to go in the future Solution Internal Starbucks should take price discrimination strategy which means it should offer products with different price levels for people with different income level Starbucks should set up a road map to achieve diversification not only sell coffee but also the cake fruit salad and so on Starbucks should have regular research for the better understanding of its competitors and better