Case #1- Starbucks Strategy: Its a Small World After All- Case 2.1
A1. Create a SWAT analysis of Starbucks focusing on its plans for international growth.
1. Strengths
a. Starbucks has obtained a strong brand name over the years.
b. They have obtained a system that works.
Consistency
Astounding customer service
A long range of customer loyalty
Superior quality
Good training and management system
They understand their target audiences.
They have the resources and money for valuable research.
Their marketing strategy is magnificent. An example is how they name their coffee Tall,
Venti, and Grande. This gives the customer a sense that the product is foreign and exotic.
With this in mind, customers are willing to pay the extra money. They want those unique
products. (paladn)
c. Now with their products sweeping nationwide, Starbucks is able to tie-in products, such
as coffee cups and briefcases, to expand their market.
d. Starbucks has an incredible distribution system. They now serve coffee at 6,500 stores
nation wide.
e. The product itself is quality guaranteed. Superior to other competing coffee shops, such
as Dunkin Donuts and local coffee houses, following in its footsteps.
f. Starbucks has a very atmospheric feeling about it. From the sofas to the classical music,
sipping a coffee and reading a book is all part of the Starbucks experience.
g. Starbucks has a very interactive website for its customers. “Good information is good
business.” (paladn)
2. Weaknesses
a. Price may be difficult concerning overseas expansion. The company must focus on what
country they are entering and consider lowering prices to fit their economy.
b. Some countries perceive the United States as uncivilized country and want nothing to do
with American products. Starbucks must take this into consideration and try to overcome
the label of trying to sell the American culture.” (Kurtz 60)
c. There is going to be a huge problem when it comes to competing with local mom and
pops caf*s. Starbucks needs to understand that moving internationally may put any local
businesses out of jobs and cause a downfall in the economy. This in the long run may hurt
the Starbucks business.
d. With these problems listed above, Starbucks needs to consider if they have the financial
resources if a similar problem arises.
3. Opportunities
a. Expanding internationally will heighten and expand awareness about the Starbucks
Corporation.
b. Obviously the move internationally will bring in more money for the business.
c. The American people are known for traveling. When they travel overseas they are more
likely to come to a cooperation that they are comfortable with. Starbucks is known for
