Starbucks strategy analysis
Threats: Growing competition in the beverage industry: Competition in the beverage industry has increased a lot.
Worldwide political and government agencies have grown highly strict in terms of their control of local and international business.
Generalized standards for most products — Some of its product offerings are not aligned with the cultural standards of other markets. Operating income of the brand saw a slight decline in falling from 4.
These three partners were inspired by one of the leading coffee entrepreneur namely Alfred Peet. Law is keenly observing businesses around the globe to ensure they remain engaged in ethical practices.
Starbucks resources and capabilities
Moderate diversification — Starbucks has also diversified its business operations by introducing innovative merchandises and food items. The brand is known for many more extraordinary things as well. This makes the imitability of products quite easy for other companies. It was Howard Schultz plan to add beverage restaurant business in addition with retail store but owners of the Starbucks were conservative and became strict with their original idea of marketing fine Arabica coffees at retail. To achieve its objective the brand has focused on disciplined expansion in key markets including developed and fast developing as well as optimization of its licensed and owned store base. The level of oversight and control of businesses by legal agencies globally has increased a lot. Apart from that currency fluctuations and a stronger dollar also affect businesses like Starbucks adversely. Global presence: Starbucks is a global brand that sells its products across 75 countries. Legal Starbucks, as a multinational company follows all the rules and regulations of countries where company has operations and also countries regulation from which company collect raw materials especially coffee beans.
Threats Presence of high number of competitors is a significant threat for the company where for beverage products switching cost is almost nil.
It offers excellent quality and consistently standardized products in all the locations.
based on 28 review