Amazon vs Starbucks
I
SWOT Starbucks
Strengths
Starbucks owns the most recognizable brand in the specialty coffee business, and the Starbucks experience is an irreplaceable differentiating factor.
Howard Shultz, founder and chairman of Starbucks is the barista to the world. Shultz has practically invented specialized coffee as a mass product, his leadership and innovative vision are very valuable assets.
The company has a loyal customer base willing to pay premium prices for Starbucks products.
Store location is an important competitive factor, and Starbucks has secured its presence in many of the most desirable corners of the planet.
Starbucks is ahead of most competitors when it comes to financial strength and profitability.
Weaknesses
Starbucks products are more expensive than those offered by the competition, and customers could easily switch to lower priced alternatives in times of economic hardship.
Aggressive expansion can be risky, as it can lead to cannibalization and a watered down Starbucks experience.
Health implications of coffee consumption are a matter of debate, and many of the company´s products have high calories and fat content.
Opportunities
International expansion is still in its first stages, there is plenty of room for growth in emerging markets.
Revamped food offerings, juice, energy drinks and even potentially some alcoholic drinks are smart ways to leverage the brand and attract different kinds of customers. The acquisitions of Evolution Fresh and La Boulangerie fit quite well into this strategy.
The company has taken a two sided approach to the home brewing boom popularized by Green Mountain Coffee Roasters (NASDAQ: GMCR). On one hand it produces K-Cup coffee and tea packs for use in Green Mountain´s Keurig, but at the same time Starbucks is competing with its own premium brewing machine, Verisimo.
Introducing new products and different distribution venues is a strategy which Starbucks is implementing successfully, and it still offers many
SWOT Starbucks
Strengths
Starbucks owns the most recognizable brand in the specialty coffee business, and the Starbucks experience is an irreplaceable differentiating factor.
Howard Shultz, founder and chairman of Starbucks is the barista to the world. Shultz has practically invented specialized coffee as a mass product, his leadership and innovative vision are very valuable assets.
The company has a loyal customer base willing to pay premium prices for Starbucks products.
Store location is an important competitive factor, and Starbucks has secured its presence in many of the most desirable corners of the planet.
Starbucks is ahead of most competitors when it comes to financial strength and profitability.
Weaknesses
Starbucks products are more expensive than those offered by the competition, and customers could easily switch to lower priced alternatives in times of economic hardship.
Aggressive expansion can be risky, as it can lead to cannibalization and a watered down Starbucks experience.
Health implications of coffee consumption are a matter of debate, and many of the company´s products have high calories and fat content.
Opportunities
International expansion is still in its first stages, there is plenty of room for growth in emerging markets.
Revamped food offerings, juice, energy drinks and even potentially some alcoholic drinks are smart ways to leverage the brand and attract different kinds of customers. The acquisitions of Evolution Fresh and La Boulangerie fit quite well into this strategy.
The company has taken a two sided approach to the home brewing boom popularized by Green Mountain Coffee Roasters (NASDAQ: GMCR). On one hand it produces K-Cup coffee and tea packs for use in Green Mountain´s Keurig, but at the same time Starbucks is competing with its own premium brewing machine, Verisimo.
Introducing new products and different distribution venues is a strategy which Starbucks is implementing successfully, and it still offers many
References: http://beta.fool.com/acardenal/2012/11/09/starbucks-swot-analysis-tasty-coffee-stock/16100/ http://beta.fool.com/ddelony/2012/12/28/swot-analysis-amazon/18812/ https://sites.google.com/site/quickservicecoffeei/vrio-analysis http://www.slideshare.net/sharvan316/starbucks-case-study-2675777#btnNext Rothaermel, F.T. 2013. Strategic Management Concepts. McGraw Hill Irwin.