TOWS MATRIX


STARBUCKS

Speakers : Wang Jia Sun Lujing
Li Yuan

Index Introduction TOWS analysis SO Strategy WO Strategy ST Strategy WT Strategy Conclusion .

Introduction Starbucks Corporation is an international coffee and coffeehouse chain based In Washington. with about 17. Starbucks is the largest coffeehouse company in the world. .000 stores in 50 countries.

• TOWS analysis is variant of the classic business tool. . • It is a tool for situational analysis. SWOT Analysis.

Strength Weakness Look for opportunities Look for strategies which that make use of strength address weakness Look for strategies which use strength to avoid threat Look for strategies which avoid threats and minimize the effects of weaknesses .

Excellent products and services 3. Respected employer and good employee management . Largest coffeehouse chain in the world 4. NO.Strengths 1.1 global coffee brand valued at $4 billion 2. Profitable organization with healthy financial records 5.

Weaknesses 1. Depending on one main competitive advantage – coffee (Needs more various products and customer bases) .High product pricing 2. Prices continually rising 3.

3. 2. New products and services Expansion of its global operations Extend supplier range Focus on emerging economies . 4.Opportunities 1.

Possibility of substitute . dairy products.) 3. Saturated markets in the developed Economies 4.Threats 1. Increasing number of competitors 2. etc. Rising cost of raw materials (coffee beans.

Starbucks is well known for its quality and fast services throughout the world. Starbucks can continue to increase its revenue by expanding in other countries as well. 2.The major strength of Starbucks is its global presence and its strong customer loyalty which helps to increase its market share and growth in the coffee market. in order to upgrade its services according to customer’s requirement is to come up with more technological advancements.SOstrategy 1. . 3.By constantly introducing new innovative products in each store.

.Potential takeover or Merger in Austral Massive expansion for multinational company Takeover of a local business saves the time for initial campaign and office setup It does not increase the number of competitors in the market and took advantage of the customer loyalty of the business being taken Starbucks can seek counseling on the matter of a potential merger with its competitors since it could be its opportunity in exploring the Australian market.

ST strategy 1. Another way is to change their market strategy by reducing their prices to penetrate in the foreign market. .One of the major threats that Starbucks could face is against its competitors.Due to economic/political instability in some countries that affect the business operations. Starbucks should innovate or diversify its products more often to retain its position in the market. Frappucino light blended coffee is one of its examples. Starbucks can shift its operation elsewhere where it seems to have more potential growth. For this purpose. 2. However with its strong global image.

they must take advantage of their products and adapt them according to the consumer’s demand and environment through product diversification or market extension strategy.As Starbucks has large market share of about 85% in the US market. 2.If Starbucks face difficulties to operate internationally.WOstrategy 1. they must take advantage of their market expansion to increase its market share outside its domestic market. .

canned coffee or bottle with stylish Starbucks logo which already prevailed in most Asian countries and America . if it can distribute service in a more flexible way such as selling coffee on a small coffee van Creative Starbucks image Starbucks can try to release new packing.New business model Diversify the distribution channel in Australia Starbucks usually runs in the form of storefront coffee shop.

2.To avoid this threat such as rise in the cost of dairy products is to diversify its products that do not include any dairy items.WTstrategy 1.Starbucks when faced with political/economic instability outside the domestic market (US) needs to extend its product line in beverages. .

Over weighting in the American market Products innovation New business model .