16.1OurRecommendationsonStarbucksFurtherDevelopment--BusinessEnglishFinalExamination16.2AgendaStarbucksIntroductionViewingStarbucksbySWOTRecommendations16.3Theleadingretailerofspecialtycoffeebeveragesandbeansandrelatedfoodandmerchandise.StarbucksIntroductionCompanyName:StarbucksHeadquartersLocation:SeattleEstablishedTime:1971FirstStarbucksexpands:1990scoffeehouses:Withmorethan5,200licensed2800storesinover30countriesAnnualsalesfor2005:$5.3Bwithprofit$392MBusinessactivities:1.Retail2.StrategyallianceManagementStructure:fourlevelsLogoHistory16.5AgendaStarbucksIntroductionViewingStarbucksbySWOTRecommendations16.6ViewStarbucksbySWOTItisafamousglobalcoffeebrandstandforhigherproductvarietyandquality.Providesatisfiedserves.Havethewelltrainedemployeesandrespectsthem.Successfullocationstrategyandgrowthstrategy.Wellknownforstrongethicalvaluesandsocialresponsibility.STRENGTHS16.7Highpriceproductsthatitcan’tacceptedbytheordinary.Theorganizationisdependentonamaincompetitiveadvantage,theretailofcoffee.Thiscouldmakethemslowtodiversifyintoothersectorsshouldneedarise.ViewStarbucksbySWOTGoodcustomerexperiencealsomeansawaste,suchasespressowillbethrownawayifit’snotservedwithin10s,Cofferbeansaredonated7dayaftercomingoutofvaccum-sealedpacks.Theturnoverisonly60%considerablylessthan150~200%inotherfirmsinthegoodservicebusiness.Verylittleinvestigationinadvertising.WEAKNESSES16.8Co-brandingwithothermanufacturersoffoodanddrink,thattheyprovidenewproducts,e.g.tea,ice-cream.Newproductsandservicesthatcanberetailedintheircafes,suchasFairTradeproducts.Thecompanyhastheopportunitytoexpanditsglobaloperations,tomakeanewmarket.ViewStarbucksbySWOTStrategyalliancetoexpanditsproductanddistributionportfolioPotentialnewmarketisquitehuge,suchasChina,India,SouthAmerica.OPPORTUNITIES16.9ViewStarbucksbySWOTTHREATSWhoknowsifthemarketforcoffeewillgrowandstayinfavorwithcustomers,orwhetheranothertypeofbeverageorleisureactivitywillreplacecoffeeinthefuture?ManycompetitorshavebenchmarkStarbuckswhichincreasingthecompetitionincoffeeindustry,soifStarbucksdon’tkeepcreating,itwillreplacebyothersTheproductscostisincreasing.Pricewarfarecontinuing.16.10AgendaStarbucksIntroductionViewingStarbucksbySWOTRecommendations16.11RecommendationstoStarbucksSOstrategy(TakeS,makeuseofO)BrandextensionThemarketshareexpansion1.Starbuckskeepsthereputationthattheyservethebest,andmakeuseofopportunatestotakeaggressivelocationstrategytoexpandthemarket.3.Theyhavetokeepitsqualityandsticktoitsmission.Theycanusetheverticalstrategy-----gainmorecontrolontheirinputchoosingthebestcoffeebeans.Itcaninvolveineveryprocedureofproducingacupofcoffeetomakesureitspuritybysettingdetailedstandards.2.Tobuildabetterimage.TheycancooperatewithFairTradewhichisanorganizationbenefitspovertygroupandtheenvironment.Inthisway,theycanmakemoneyinagreenwayanddifferitfromotherbrands.16.12WOstrategy(UseO,changethedisadvantage)ProductDifferentia-tionReversethebrandcrisisDirectmanagement4.Co-brandingwithlocalfamousmanufacturersoffoodanddrink,toextendthedegreeofbrandreputation,andbringoutlocalfavoritebeverageproducts.5.Starbuckshavetodokeeptheserviceforcustomersandprovidemorehigh-techconditionsforpeople.EspeciallyinChina,manycoffeestoresdon’tprovidethewirelessservice.ThiswillbeagoodchanceforStarbucksRecommendationstoStarbucks16.13RecommendationstoStarbucksSTstrategy(takeS,avoidT)FlexiblepricePublicrelationsDifferen-tiation6.Tomaintaintheirspecialculture,companyshouldgotogreatlengthstomakesurethestorefixtures,themerchandisedisplays,thecolors,theartwork,thebanners,themusic,andthearomasallblendedtocreateaconsistent,inviting,stimulatingenvironmentthatevokedtheromanceofcoffee.Also,theycanspendmoretimelisteningtotheiremployeesandaskingfortheiropinionsonthecompanyoperation16.14RecommendationstoStarbucksWTstrategy(OvercomeW,avoidT)LookingforasupplieroflowerpriceTurn-offthestoresonthenoprofitorlossProductlinecontrac-tion7.Facingthedog-eat-dogcompetition,inordertogainalargeshareinlocalmarket,Starbuckshastoworkoutplanstodevelopnewproductstocaterthedemandsforlocalcustomers..8.Togainmoremarketshare,theycanuseaggressivegrowthstrategiesandadapttothechangingenvironment.16.15RecommendationstoStarbucksWTstrategy(OvercomeW,avoidT)LookingforasupplieroflowerpriceTurn-offthestoresonthenoprofitorlossProductlinecontrac-tionForanexample:SinceMc.cafefromMcDonaldshasattractedmoreandmorecustomersbyitslowprice.Starbuckshastotakemeasurestofightbackbycombiningthepriceandqualityatthesametime.Maybetheycanusedifferentiationstrategiesandemphasizestheyprovidethebestservice.16.16End