Topic SWOT Analysis
A SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is a strategic planning tool that can help a business to boost profits and productivity by understanding its competencies (strengths and weaknesses) as well as the competition. For this assignment, you must select one (1) of following; Cheesecake Factory (http://www.thecheesecakefactory.com/ (Links to an external site.) ), Starbucks (https://www.starbucks.com) (Links to an external site.) or Chipotle Mexican Grill (http://www.chipotle.com/en-US/Default.aspx?type=default (Links to an external site.) ), Amazon (https://www.amazon.com/) (Links to an external site.)and (https://www.wholefoodsmarket.com/) (Links to an external site.)determine its competitive advantage. Be sure to identify the business you have chosen in your written paper. Identify one major competitor for your selected business and justify your explanation. Explain the strengths and weaknesses and justify your explanation. Identify one (1) way in which the business can utilize its strengths and minimize its weaknesses to be competitive. Explain why you believe this would be effective.
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A SWOT Analysis of Starbucks Coffee Company
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December 1, 2020
A SWOT Analysis of Starbucks Coffee Company
Starbucks was founded in 1971 in the United States at a time most Americans brew their coffee at homes. During that time, the company had just a single retail shop in Pike Place Market, Seattle (Starbucks Coffee Company, 2020). Today, it is a multinational corporation with over 63,000 outlets in the US and many branches in various parts of the world including South America, Asia, and Europe. The company has maintained its outstanding market leadership due to its competitive advantage. The major sources of competence are its supreme customer service, clean and well-maintained stores and retail shops, and excellent human resource management values. However, the company faces major competition from McDonald’s, another US multinational in the fast-food industry.
McDonald’s has been competing for the top spot in the fast-food industry with Starbucks, becoming a major competitor of the company. The two corporations competing for the same consumers in the market through their product offerings. For example, McDonald’s offers complete breakfast, which is also offered for the same market by Starbucks (Gulati et al., 2016). The two companies also have a single combined largest total market capitalization. Besides, similar product mix, the financial capabilities of McDonald’s makes it a major competitor to Starbucks. The only differentiation aspect between the two companies in terms of products is the unique individual product offering.
Strengths, Weaknesses, Opportunities, and Threats
Strengths
The major strengths of Starbucks are its positive image, strong brand name, a global reputation for ethical sourcing, market dominance, premium, and quality coffee beans, employer of choice, and strong financial capital. Kurtz et al. (2019) point out that Starbucks is built on a strong brand name that has been developed over a long focus on coffee products. The company offers premium coffee from well-selected producers in the market. The company is also listed among the top 100 best companies to work for in the United States by Fortune magazine (p. 181). The authors further point out that besides the strong reputation as a good employer, the company is known for its responsible corporate policies. Moreover, the company has a solid financial base due to its global expansion that has seen its numerous outlets in many countries. The global outlets bring in billions of dollars in revenues which are re-invested in products and acquisitions. The company introduced breakfast and lunch items, increasing its product mix, and further strengthen its consumer market.
Weaknesses Although the company has numerous strengths it has several weaknesses. Some of the weaknesses include international currency fluctuations, premium-priced product offerings, oversaturation in some markets, and easily imitable ambiance. The company has stores and retail outlets in Europe, North America, South America, Asia, and Africa. Besides, the company imports its premium coffee from farmers in South America, which combine to expose the company to the impact of currency fluctuations. According to………………………………………………………………………………………………………………
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