EXECTUIVE SUMMARY
Wake up and smell the coffee -- Starbucks is everywhere. The world's #1 specialty coffee retailer, Starbucks has some 13,000 coffee shops in more than 35 countries. The outlets offer coffee drinks and food items, as well as roasted beans, coffee accessories, and teas. Starbucks owns approximately 7,500 of its shops, which are located in about 10 countries (mostly in the US), while licensees and franchisees operate more than 5,500 units worldwide (primarily in shopping centers and airports). The company also owns the Seattle's Best Coffee and Torrefazione Italia coffee brands. In addition, Starbucks markets its coffee through grocery stores and licenses its brand for other food and beverage products.
To analyze how well Starbucks is doing within its industry, we’ll be utilizing the SWOT Analysis to determine Starbucks potential for growth, threat from their competitors and their environment. Their main threats are from their competitors and also their potential to tarnish their most valued asset, their brand. The strengths for Starbucks are of course with their brand, as well their comfortable work environment and commitment to environmental leadership. Starbucks main weakness is their rapidly expand their number of stores. It might dilute the company’s profit. The management team should take this problem seriously.
By performing a Product Market Matrix, we know why Starbucks is so popular and successful. Starbucks create a Third Place culture, which is beside home and work. Besides, many stores also have wireless internet access. Starbucks devoted to introduce of new products and development of new distribution channels, such as partnership with the Pepsi-Cola company develop and distributes ready-to-drink beverage and Dreyer’s Grand Ice Crea ...