SWOT analysis for Starbuck Company Essay Example

average Starbucks location draws on a population base of 200,000. In San Francisco and Seattle, Starbucks draws on population bases between 17,000 and 19,000. In cities where Starbucks does not draw on small population bases, smaller competitors can attract some of Starbucks’ 200,000 person population base.

• There are still rooms for further expansion by providing more shops on other countries.
• Starbucks can also reduce competition by buying competitors because they have now the economic capability to do that as oppose to small competitors.
• Their recent joining in the music industry may add more name to Starbucks.Company WeaknessesCompany Strengths

As part of its expansion strategy of clustering stores in existing markets, Starbucks has experienced a certain level of cannibalization of existing stores by new stores as store concentration has increased.

However, management believes such cannibalization has been justified by the incremental sales and return on new store investments. This cannibalization, as well as increased competition and other factors, may continue to put downward pressure on the Company’s comparable store sales growth in future periods.

Innovation doesn’t seem to be a stumbling block for Starbucks. The company is now experimenting with breakfast-warming ovens. It plans to install them in 600 stores by the end of the fiscal year.- For every failed drink concoction such as Chantico, the company is coming up with popular new ones.

One of the main strengths of Starbucks over the years has been their tireless effort to make their product an uplifting part of people’s daily lives. Starbucks’ strategy for expanding its specialty operations is to reach customers where they work, travel, shop, and dine by establishing relationships with prominent third parties who share their values and

commitment to quality.