Starbucks Analysis
Starbucks Analysis
Driving forces:
External:
a) Different consumer tastes and preferences b) An already established coffee culture in Europe c) Local competitions d) Price sensitivity of the consumers
e) Social concerns regarding caffeine, and it addictive properties also need to be considered.
Internal (from the organizations’ perspective):
a) To reach larger economies of scale by selling to more customers in other countries. b) To reduce the risk of over dependence on one country by spreading sales in multiple countries. c) Starbucks is much more concerned with the quality of their product versus price. d) To replicate the success at home in new settings
Strengths: a) A strong home market and brand reputation b) Wide product offerings c) A differentiated ambiance d) Value Employees. Starbucks considers its employees “partners”. e) The Starbucks “experience” is about passion for a quality product, excellent customer service, and people. f) Name Recognition. g) Quality Products and Ethical Sourcing
h) Starbucks promotes ethical sourcing, contributes heavily to their communities, as well as continually strives to buy, sell and use environmentally friendly products.
i) Technological Factors -Starbucks has been continually looking for ways to enhance the customer experience. WiFi
Weaknesses: a) Mode of entry meant less control b) Overpriced c) Lack of consumer research d) Innovation e) creativity
Opportunities: a) Big market with an established taste for coffee b) Brand America image c) Working with other local suppliers d) Creation of additional products
Threats:
The Liability of Foreignness
The inherent disadvantage foreign firms experience in host countries because of their non-native status.
Liability is manifested in two dimensions:
a) The numerous differences in formal and informal institutions in different countries
Driving forces:
External:
a) Different consumer tastes and preferences b) An already established coffee culture in Europe c) Local competitions d) Price sensitivity of the consumers
e) Social concerns regarding caffeine, and it addictive properties also need to be considered.
Internal (from the organizations’ perspective):
a) To reach larger economies of scale by selling to more customers in other countries. b) To reduce the risk of over dependence on one country by spreading sales in multiple countries. c) Starbucks is much more concerned with the quality of their product versus price. d) To replicate the success at home in new settings
Strengths: a) A strong home market and brand reputation b) Wide product offerings c) A differentiated ambiance d) Value Employees. Starbucks considers its employees “partners”. e) The Starbucks “experience” is about passion for a quality product, excellent customer service, and people. f) Name Recognition. g) Quality Products and Ethical Sourcing
h) Starbucks promotes ethical sourcing, contributes heavily to their communities, as well as continually strives to buy, sell and use environmentally friendly products.
i) Technological Factors -Starbucks has been continually looking for ways to enhance the customer experience. WiFi
Weaknesses: a) Mode of entry meant less control b) Overpriced c) Lack of consumer research d) Innovation e) creativity
Opportunities: a) Big market with an established taste for coffee b) Brand America image c) Working with other local suppliers d) Creation of additional products
Threats:
The Liability of Foreignness
The inherent disadvantage foreign firms experience in host countries because of their non-native status.
Liability is manifested in two dimensions:
a) The numerous differences in formal and informal institutions in different countries