Swot / Tows Starbucks
Strengths
Global presence
Starbucks has a widespread global presence. The company operates about 13,168 retail store locations. The company 's widespread presence provides it with widespread brand recognition and a strong customer base.
A disciplined innovator
Starbucks is a disciplined innovator. The company effectively manages its innovation time line generating consistency in same store sales. Starbucks ' ability to roll out new products relatively quickly is a considerable competitive advantage for the company.
Increase in revenues and profits
The company recorded revenues of $5294.2 million during the year ended September 2004, an increase of 29.9% over 2003. The company 's revenues grew at a compounded annual growth rate of 25% from fiscal 2000 and fiscal 2004.
This significant rise in revenues provides the company with a strong financial base and enables it to undertake new business ventures.
Clustering of company units
With the continued growth of the coffee market, the company has looked to expand its business, including those areas where it has an established presence. Starbucks has targeted clustering its units so as to dominate particular areas. A strategy of unit clustering, and a focus on stores that have convenient access for pedestrians and drivers, represents further opportunity for Starbucks to capture an increasing share of the coffee market.
Fortune Magazine 's 100 best list of companies to work for.
Weaknesses
Reliance on US market
Starbucks ', headquartered in Seattle, derives approximately 85% of its revenue from its domestic US market. Given the company is an international brand with wide ranging operations, it should be looking to generate a greater proportion of revenues from outside the US.
Reliance on beverage innovation
An important long-term risk to the company 's stock is a lower valuation caused by a slowdown in US sale store growth. Starbucks ' store sales growth has been largely driven by
Global presence
Starbucks has a widespread global presence. The company operates about 13,168 retail store locations. The company 's widespread presence provides it with widespread brand recognition and a strong customer base.
A disciplined innovator
Starbucks is a disciplined innovator. The company effectively manages its innovation time line generating consistency in same store sales. Starbucks ' ability to roll out new products relatively quickly is a considerable competitive advantage for the company.
Increase in revenues and profits
The company recorded revenues of $5294.2 million during the year ended September 2004, an increase of 29.9% over 2003. The company 's revenues grew at a compounded annual growth rate of 25% from fiscal 2000 and fiscal 2004.
This significant rise in revenues provides the company with a strong financial base and enables it to undertake new business ventures.
Clustering of company units
With the continued growth of the coffee market, the company has looked to expand its business, including those areas where it has an established presence. Starbucks has targeted clustering its units so as to dominate particular areas. A strategy of unit clustering, and a focus on stores that have convenient access for pedestrians and drivers, represents further opportunity for Starbucks to capture an increasing share of the coffee market.
Fortune Magazine 's 100 best list of companies to work for.
Weaknesses
Reliance on US market
Starbucks ', headquartered in Seattle, derives approximately 85% of its revenue from its domestic US market. Given the company is an international brand with wide ranging operations, it should be looking to generate a greater proportion of revenues from outside the US.
Reliance on beverage innovation
An important long-term risk to the company 's stock is a lower valuation caused by a slowdown in US sale store growth. Starbucks ' store sales growth has been largely driven by