Company synopsis
The company’s synopsis makes it clear that it only sold drinks when it was started when Howard Schultz bought it and made it sell coffee as a bar. This development to a coffee bar made it shift and have new consumers as the product changed from the original product the company used to manufacture. This led to more companies that also offered coffee emerging, but this did not affect Starbuck company much as it continued to grow much more in terms of revenue, the opening of new stores to increase the scale of operation and serve more customers, and also increase in the profit for the sales in the company, as the consumers and the market for the company were still increasing.
As discussed by Howard Schultz, this company was a victim of its overexpansion as it used its growth as a competitive strategy and edge in operation rather than considering other business operation tactics, which led to the company having difficulties in financial issues. The company then considered closing the stores that were not performing well and operating internationally as initiatives to ensure that the company was doing well in terms of customer service delivery and profit-making (Geereddy, 2017). This led to the company returning to its original operation goal and increasing its brand value.
SWOT analysis
Strength
Starbucks has many strengths that can make it move forward, including its big brand name and a growing capability that withstands and outweighs its new invading competitors from the market Sarsby (Sarsby, 2016). The company ensures that there is customer satisfaction and that there is quality assurance in the company.
Weaknesses
The company used its fast-growing capability and ability as an operational strategy rather than majoring in the tactics that will enable it to grow further to operate in the international market. This led to the company’s underperforming branches (Benzaghta et al., 2021). This pulled the company back and made the competitors use it as a competitive edge.
Opportunities
The company has a big brand name that can work as security in financial institutions. This can lead to the company being able to obtain more finances for operation and also lead to the company increasing the scale of operation to operate at the international level (Aiello, G., & Dickinson, 2019). Having a good brand name makes the company more competitive in the market as it can lead to more customers, leading to the company making more profits.
Threats
There are threats from the competitors as new companies are also making similar products in the same market that the Starbucks Company serves. This is a threat to the company because it can be outweighed in the market by a small mistake happening in the market.
Situational analysis
Situational analysis majors on the 5c analysis: our company, customers, and climate. Collaborators and competitors.
Company
Majoring on the company has a brand name that enables it to have a large market to serve, as the customers are attracted to purchase its products (Clarke et al., 2019). The company also used advanced technology in production and also customer service, which has improved the quality of production in the company.
Customers
Looking at the customers, the company serves a large base of customers as the product sold by the company is not specified on gender or sex. This makes the company have unspecified customers to serve, which makes the company serve a large number of customers to serve. The company also ensures it sustains its customers by operating fairly on them and maintaining affordable prices.
Competitors
The company has highly developing competitors as new companies evolve and produce the same product as Starbucks. This makes the company improve on how it serves the customers and the quality of products it offers in the market, as the competitors can easily throw it away in case of poor performance in the market.
Climate
The company requires the climate to be sustainable because the company produces a commodity that is best consumed in a cold environment. The climate plays a critical role in the consumption of the company products.
Cost
The company has ensured that the product is affordable to the customers by considering the welfare of the customers and the economic factors affecting the customers. It has lowered the products for the commodities to suit every class of customers, making it have a large base market for the products.
Target customers
The target customers for the company include people who consume coffee drinks and related products. The company also serves many travelers and tourists who visit the area because its operation hours give it adequate time to meet its target customers (Haskova, 2020). The company has attracted many customers from different social classes due to the lower and more affordable prices, leading to more sales in the market.
How can the company improve on the success in the marketing strategy?
The company can consider serving the customers more effectively and first major on the domestic customers by ensuring that the customers are satisfied at the domestic level. This ensures that the customers in the domestic market popularise the product and have a wide knowledge of the products from the company (Chang, 2017). The company can also consider improving the technology in the production of coffee drinks to ensure improved product quality which will lead to the company building its brand name. After building this brand name, the company can successfully venture into the international market and still have a large market to serve.
How this company can put together the segmenting and targeting together.
To put segmenting and targeting together, the company can consider ensuring that there is good performance and that there is good organizational culture, as organizational behavior is critical to the performance of the company. By understanding its potential customers well, the company can achieve its target with few challenges. After understanding its different groups of customers based on culture, demographic factors, and their needs, the company can work towards what the customers require, making it meet its target. This will make the company able to operate in a stable environment in the market where it will be able to satisfy its customer’s target by evaluating the segments of the customers.
References
Aiello, G., & Dickinson, G. (2019). Beyond authenticity: A visual-material analysis of locality in the global redesign of Starbucks stores. Visual Communication, 13(3), 303-321.
Benzaghta, M. A., Elwalda, A., Mousa, M. M., Erkan, I., & Rahman, M. (2021). SWOT analysis applications: An integrative literature review. Journal of Global Business Insights, 6(1), 55-73.
Chang, C. Y. (2017). Visualizing brand personality and personal branding: Case analysis on Starbucks and Nike’s brand value co-creation on Instagram. The University of Iowa.
Clarke, A. E., Washburn, R., & Friese, C. (2019). Introducing situational analysis. In Situational analysis in practice (pp. 5–36). Routledge.
Geereddy, N. (2017). Strategic analysis of Starbucks corporation. Harward [Електронний ресурс].–Режим доступу: http://scholar. Harvard. Edu/files/nithingeereddy/files/starbucks_ case_analysis. Pdf.
Haskova, K. (2020). Starbucks marketing analysis. CRIS-Bulletin of the Centre for Research and Interdisciplinary Study, pp. 1, 11–29.
Sarsby, A. (2016). SWOT analysis. Lulu. com.
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