Starbucks Case Study

SWOT ANALYSIS

Strengths
Starbucks is a global coffee brand with high quality coffee, it has well-trained employees and good service. Starbucks have the highest employee satisfaction rate by 80% to 90% while having the lowest turnover rate. 

Weaknesses
By focusing more on growing the business the company has stopped following its customers which has led to lose of customers. The company had no chief marketing officer due to which Starbucks lacked the ability in marketing department.

Opportunities
The opportunity for the company to expand in different countries. Rapid retail expansion from the company is an opportunity towards fulfilling the demand across the globe.

Threats
An increasing number of potential competitors because of the increase of many specialty coffee shop offerings.
Many other coffee producers have been offering coffee for a price better and lower than Starbucks.
In the minds of the consumer there is created a negative image like Starbucks cares more about the money than its consumers.

4P’s
Product – Various product portfolios
Price- Medium high-end price
Place- It is always located in neighborhood where there is a perceived high traffic, high visibility settings such as retail centers, office buildings, and university campuses.
Promotion- Membership cards, takeout service, supply tea and some other types of coffee to suit some areas.

Problem
With the help of the facts derived from the case study we reach the conclusion that Starbucks should not invest $40 million in labor because this will increase its cost to an extent that it will generate very few profits. Starbucks' service performance was not meeting customer expectations, especially in terms of the speed.