Starbucks Corporation is an international coffee chain leading coffeehouse company in the world. It was founded 1971 and is based in Seattle, Washington. It is the leading roaster, retailer, and marketer of specialty coffee in the world. Its operations include upwards of 7300 coffee shops and kiosks in the United States, and nearly 3000 in 34 other countries. Its mission is to establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining uncompromising principles while growing.
SWOT Analysis
• Strengths
1. Starbucks is the leading retailer and roaster for brand specialty coffee in the world.
2. Strong brand image with the motto ‘The Starbucks Experience’.
3. Starbucks is a global organization with more than 16.000 retails in 48 countries in the entire world.
4. One of the strongest franchises in the world with more than 6500 licenses shops in the world.
5. Starbucks is known for providing superior products and services.
6. Starbucks offered both functional and emotional benefits.
7. Starbucks is number 7 on Fortune Magazine's "100 Best Companies to Work For" for 2008.
8. Have loyal customers in all of Starbucks’ existing countries.
9. High quality control in all Starbucks’ retails.
10. Have a consistent high quality of service.
11. Sophisticated atmosphere typical of the Italian Coffee houses, music, interior design and artwork.
12. Outlets positioned in high street locations, malls, within other businesses areas like offices building.
13. Wi-Fi Internet service in all of Starbucks retails.
14. Fast coffee serving.
15. The process of preparing the product does not need highly sophisticated technology.
16. Have a lot of flavors variation.
17. Limited number of strong competitors.
18. High market share and market growth.
19. Always aim to help support environment, ex: by using recyclable tissue.
20. Always treat the employees as a partner not just as employees.
21. Welcome all questions, comments and feedback where customers could send it by email, sms or just inform it in Starbucks retails.
22. Have a Starbucks Workers Union which helps employees to inform their thoughts to management.
• Weaknesses
1. High pricing which cost not all kind of market could buy Starbucks’ products.
2. Starbucks considered ‘American Global’ which cost sentimental issue for customers in some countries.
3. Too focus on US domestic market.
4. Starbucks refuses to guarantee that milk, beverages, chocolate, ice cream, and baked goods sold in the company’s stores are free of genetically-modified ingredients.
5. Because of its perfectness of employees service, some employees complaints about the management which push them to always be perfect. That is why they make Starbucks Workers Union.
• Opportunities
1. The potential employees are educated people which make it easier to train them.
2. Customer is not price sensitive.
3. Could be able to change negative image of coffee into positive one.
4. High consumerism in Indonesia.
5. Easier to penetrate market because what it sells is the fulfillment of self esteem and need to be love or to belong to community which is the major reason why peoples buy a product.
6. Strong financial support.
7. High growth of economy and market in Indonesia, especially in urban areas.
8. The democratic economy policies in Indonesia make it easier for Starbucks to expand their business.
9. Peoples in Indonesia positioned Starbucks places as one of the best meeting point.
10. Could diverse their product not only in coffee.
11. Many of Starbucks coffee are using organic beans.
12. Some of Starbucks beans are harvested in Indonesia island of Sumatra and Sulawesi. Starbucks purchasing high quality beans in these island at premium prices to help farmers to support their families and invest in a sustainable production. Starbucks paid an average price of $1.20 per pound against the commodity average price of $0.40-0.50 per pound.
• Threats
1. Global financial crisis which make peoples tend not to spend too much money.
2. Low income in Indonesia makes it hard for Starbucks to penetrate more market segmentation.
3. Sentimental issue to the bad effect of coffee from society.
4. Some people believes that Starbucks turning the world into a giant corporate generic mess.
5. Critics said that it exploits farm workers in third countries.
6. It said that Starbucks domination driving small cafes out of business.
7. Issues stated that Starbucks exploit their workers by paying a very minimum wage with a very high standard of work they need to fulfill.
8. Threats of substitute products and services include other drink items such as colas, teas or juices that are sold in retails.