Ch. 2 - Strategic Planning for Competitive Advantage

Introduction

Starbucks is the largest coffee company in the world, Starbucks Corporation was founded by Jerry Baldwin, Zev Siegl, and Gordon Bowker in 1971. It is the most successful coffee shop in the past few decades. Now Starbucks coffee are opened at world-wide in more than 60 countries. Starbucks selling coffee, coffee beans, snakes, cups and so on. Customers of Starbucks enjoy high quality of coffee, comfortable environment and relax atmosphere.

The SWOT.

1.S---Strength.

First of all, Starbucks has high visibility in the market.Starbucks is the symbolization of relaxation, enjoy and comfortable, it has special market strength. Starbucks’ coffee is not just a cup of coffee, coffee is just a carrier, actually, it is through coffee, give customer an unique style, the consumption of coffee is actually an cultural communication. Also, Starbucks provides high quality services to their customers. In additional, Starbucks has its own coffee beans supply chain to ensure that Starbucks can provide good quality coffees all year round.

2. W--Weakness.

 Even though there are many Starbucks retail store in the world-wide. Starbucks’ main market is in the USA, the stores didn’t distribute equally. Also. since Starbucks are very welcomed by customers, it is always very crowed in the store, sometimes a little bit noise.

    

3.O----Opportunities

    

        Since people’s living standard is increasing along with time, there will be more customers. In addition, Starbucks cooperate with some other brands such as TAZO, LaBoulange and so on, gives Starbucks more opportunities to expand their business to some other areas. In 2011, Starbucks changed their logo, they removed the text "STARBUCKS COFFEE" on the logo, represent that Starbucks are going to expand their business to more areas.

4.T----Threats. 

   

    There are many similar coffee houses emergence nowadays, these coffee houses are Starbucks’ competitors, even though they are not popular and strong as Starbucks, they gives customers more choices in the similar products and services.

Competitive advantages.

         First of all, Starbucks can maintain their high quality coffees by controlling the process of making a good coffee from materials to products, such as pick the coffee plants, coffee beans, choose how to toast the coffee beans, and so on. Also, because of the supply chain is all in the charge of themselves, Starbucks can make more profit while maintaining the quality of their coffees.

          Secondly. Starbucks has very good services. Starbucks have a course in training their staff to be qualified in making good coffee. Starbucks have very good environment, compared to some small crowed coffee shop, Starbucks have comfortable tables and chairs for their customers, there is also WIFI available for customers which make their customers’ life more convenient. 

          Third, compare to other coffee house,it is much easier for people to find a Starbucks retail store. Since Starbucks have so many retail stores in the US, when you want to grab some coffee, it is defiantly much easily for you to find a Starbucks than to find another coffee house. Especially in Manhattan, there are Starbucks all around street corners.