Starbucks is an American coffee company founded in 1971 with over 21,000 stores worldwide. It has strengths in its strong brand, retail distribution system, and product quality. However, it faces threats from large competitors and economic conditions. To address problems from competition and economic slowdowns, the document recommends Starbucks pursue distributing through supermarkets, focus on its strengths, and enter long term contracts.

1. ASHWIN JOSEPH, SJCBA BANGALOREBy;

2. Contents
 Company Overview
 Product Mix
 Innovations
 Strengths
 Weakness
 Opportunities
 Threats
 Problems
 Recommendations
SW
OT

3. Company Overview
 American Coffee company based in Seattle
Washington
 Founders: Jerry Baldwin,Zev Siegl,Gordon Bowker
 Number of Shops: 21,536
 Chairman and CEO: Howard Schultz
 Products: Coffee,Tea,Pastries,Frappuccino
beverages.
 Number of Employees: 1,91,000
 Net Income: US$ 2.068b (2014)
 Area Served: Worldwide

4. Product Mix

5. Innovations
 Partnerships with Coca-Cola have allowed Starbucks
to sell
 prepackaged beverages-flavored ice coffee, the
double shot (a canned espresso beverage), Starbucks
Refreshers,
 Ethos bottled water, and a variety of other household
items.
 Growth in single-serve products has yielded 10%
growth in this segment

6. Strengths
 Strong brand name
 Large retail distribution system
 Quality product
 Extensive product list
 Good supplier relationships
 Massive capital funding
 Valued and motivated employees

7. Weakness
 Dependence on single source of business/income
 Prices relatively higher than competitors
 Strong dependence on suppliers
 Merchandise sales in stores
 Over reliance on home market
 Aggressive expansion leading to failure

8. Opportunities
 Overseas business expansion
 Business expansion into untapped U.S.
markets
 Extension of brand name to new products and
business lines
 Product range diversification to more food
items

9. Threats
 Strong competitors with massive capital funding
capabilities like McDonald's and Dunkin Donuts
 Economic conditions may make consumers
unwilling to pay higher prices
 Political conditions overseas may limit business
expansion
 U.S. specialty coffee industry approaching
saturation

10. Problems
 Economic slowdown affects Starbucks’ business
 Enormous competition
 Dunkin Donuts, McDonald's, and Nestle in the US
 Costa Coffee and Caffè Nero in the UK
 Inadequate marketing strategy on advertising
 Coffee prices
 Global expansion barriers. Ex: India

11. Recommendations
 Distribution at supermarkets
 Must pursue focus strategy to increase its strength
 Enter into long term contracts