Professional Documents
Culture Documents
Starbucks has the opportunity to expand in the Middle East and Africa, where the firm currently
has minimal presence. The company also has the opportunity to expand in Asia, where
economic growth rates are high. In addition, even though Starbucks already has a considerably
diverse product mix, further diversification can help improve its competitive advantage.
Partnerships and alliances can also strengthen Starbucks Coffee’s competitive position. This
part of the SWOT analysis shows that Starbucks has major opportunities for global growth.
Starbucks has a significant opportunity before it in the form of the large and
untapped emerging markets. Markets like India and China can prove important
sources of customers and revenue. However, Starbucks should also try to align its
products as per the cultural standards of these markets. Diversifying its product line
can also help the brand grow and improve its brand value. Currently, the brand is
mainly known for its premium quality coffee. It can add other products including
beverages and snacks to its product line to provide its customers with variety. Its
assortment of products is limited.
Another major area of opportunity for the Starbucks brand exists in the form of cobranding or
partnership. The brand can partner with snack brands or regional stores to sell its own products.
Imagine someone having a big fat burger with coffee. Coffee tastes better with snacks. Such
partnerships can help Starbucks improve its brand presence and get closer to its customers. It
will find a huge source of revenue by tapping into the customer base of the partner brands in
this way. Apart from that it could sell its coffee through local stores or the big retailers as well.
Such strategic partnerships will not only increase its customer baser but also improve its brand
awareness.
Threats
1. Increased Competition – This is by far the biggest threat for
Starbucks. Dunkin’ Donuts and McDonald’s are the companies, trying
the minimize Starbucks’ market share and they have already shrink it by
26%.
2. The Price of Coffee Beans – Lately, there have been talks that the
price of quality coffee beans might increase. And if this happens, the
overpriced Starbucks coffee will get even more pricey.