By: Melisa Magnuson, Megan Keough, and Tamara Sprauer
About Starbucks No. 1 brand coffeehouse in the world 20,000 coffeehouses, 60 countries Founded in 1971 at Pikes Place Market Headquarters in Seattle, WA 149,000 employees Fun Fact: On average adds 2 coffeehouses a day since 1987
Merchandise Advertises to year olds, both men and women: – Coffee – Tea – Food and pastries – Espresso pods – Coffee beans – Drink ware – Music – Books
Key Executives Howard Schultz CEO Age: 60 Net Worth: $2 billion Troy Alstead Chief Financial Officer Age: 48 Total Annual Compensation: $4.2 million Simone Valdez Senior Buyer
Financials $13.66 billion in sales (2013) Revenue $13.29 billion (2012) Valued at $4 billion Specialty drinks count as 75% of sales
Advertising for Starbucks Primary target market: women and men aged 25 to 40 Customers tend to be “urbanites” with relatively high income, professional careers and a focus on social welfare Made coffees available for direct order online, in supermarkets, and offered at select food service outlets
SWOT Analysis: Strengths Sound financial records No. 1 brand in coffeehouse segment valued at $4 billion Starbucks ‘experience’ Employee management High Quality
Weaknesses Coffee beans price is major influence over firms profits Product pricing Negative publicity
Opportunities Extend supplier range Expansion to emerging economies Increase product offerings Expansion of retail operations
Threats Rising prices of coffee beans and dairy products Trademark infringement Increased competition from local cafes and established competitors such as Costa Coffee, McDonald’s, Dunkin Brands, Nestle Saturated markets in developed economies
Sources ot-analyses/starbucks-swot-analysis.html ot-analyses/starbucks-swot-analysis.html / /title/starbucks-logo-wallpaper- wallpaper / /title/starbucks-logo-wallpaper- wallpaper