Starbucks Corporation Situation Analysis and Swot Essay

Words: 2667
Pages: 11

Starbucks and its Environment
Starbucks extends their coffee experience to everyone: kids, teenagers and adults. Part of their success comes from their ability to create new products that fit the culture of the country. In Japan, for instance, Starbucks launched green tea lattes, which later became popular in other countries (Allison). Starbucks is well established in countries like Canada, Japan, and the United Kingdom. In the US alone, Starbucks sells 4 million cups of coffee per day (Horovitz). Their products and services have transformed the way customers view coffee. Changing the way customers order, Starbucks makes it very chic to purchase custom drinks. Starbucks is like no other coffee shop: the dimmed lights
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Blenz Coffee, Waves Café, and Tim Hortons are a few of Starbucks’ direct competitors. An indirect competitor is McDonalds, who has recently launched McCafé, which aims to provide tasty treats for less. Moreover, competitors commonly provide products which are not on the Starbucks menu. For instance, Blenz offers salmon rolls, lemon soda, and vitamin water from other food manufacturers. Blenz offers brand reputation; Waves offers longer hours; and Tim Hortons offers lower prices. Strong competition drives Starbucks to differentiate itself from other companies and create value for customers in a unique way.
Although Blenz, Waves, and Tim Hortons sell similar products, they do not match Starbucks in global scale. Today, Starbucks has over 13,000 locations in 39 countries, making it a highly recognized brand (Datamonitor). On account of its great locations, Starbucks appeals to a number of mainstream and potential customers (Thompson & John). Furthermore, positioning itself as a luxury brand has given Starbucks the ability to offer its own unique features, such as serving customers special beverages during the holidays.
Known as ―the most successful chain in America‖ (Rein), Starbucks is like no other coffee shop. They do not just sell coffee; they sell an atmosphere. Starbucks is a social gathering place designed for impromptu and planned meetings, talking with friends, and an ambient study space.