Strengths And Weaknesses Of Starbucks

Submitted By rbamba
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Starbucks

In the last forty years, Starbucks has expanded to become not only America’s but the world’s poster child for coffee. Throughout Starbucks’s 42 years in business, it has worked through many ups and downs in order to be where they are today. Starbucks is where they are today because of their top-notch brand; their brand recognition puts them ahead of the game. Even though they are the leader for today’s coffee world, they lack the simple accessibility of a drive-thru, a crucial weakness. Starbucks can stay on top with a little change to their menu and rewards programs. To sum up, Starbucks should fear the future of their business, if they can’t roll with the punches that their competition throws at them. All in all, Starbucks has the potential to stay the top tier in the coffee world if they can make the necessary changes to their business.
Starbucks is the first thing that comes to mind when many people think of their morning coffee. One major strength, Starbucks has is its brand recognition. People have come to expect the delicious drinks as a norm when they venture to get their morning jolt. Starbucks is the originator of the coffee scene. With name recognition on their side, many people would rather go to the place that is known and loved then try out an unknown coffee shop. When one walks into a store, it is almost impossible not to see a Starbucks drink or one of its affiliate brands (Anonymous). The name recognition is what makes Starbucks so strong. They have the right product with good news constantly being shared about their brand. Starbucks has positive publicity like that on a regular basis. Starbucks is stable and strong.

Unfortunately for Starbucks, they can’t take the entire morning crowd. Because of their lack of drive –thru’s in many of their locations, they lose business. Many people on the hunt for their morning jolt need a quick and accessible venue to get their cup of Joe. Starbucks strives for that personal touch when dealing with their customers; however, a drive-thru could hinder their goal for that kind of customer interaction. On the other hand, if Starbucks could maintain their service oriented manner over a drive-thru, then it would only add to their customer list and help them remain the leader in the coffee industry. When you see the numbers at Starbucks, you know they have room to grow. They need the change. Because of their large client base, Starbucks needs to take this year as an opportunity to improve their menu and rewards program. For instance, Shultz already made his first purchase of a small bakery, La Boulange (Berfield). With a new look at fresh pastries and goods; Starbucks could take over the whole morning crowd because of the larger variety of breakfast options. If they change what they offer, it would incline more people to make the stop to get everything they need to start the morning off right. When Starbucks decides to isolate the morning rush crowd, their profits could greatly increase. Even though Starbucks is the best now, it doesn’t come with a guarantee for the future of their business. For example, McDonalds can pose a serious threat to Starbucks with their knock off Frappuccino, a Frappe, and their large breakfast selection.
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