Swot Starbucks

Strengths Strong note compute Starbucks is a global blot. High timbre products and a consistently-positive consumer experience have helped the company build a strong brand image. Starbucks, for instance, was ranked 91st in the 100 pinnacle Brands 2006 ranking of BusinessWeek and Interbrand, an international branding consulting firm. The BusinessWeek-Interbrand combine valued the Starbucks brand at $3,099 jillion in 2006, up from $2,576 million in 2005. Starbucks uses sophisticated and cost effective marketing strategies to build its image including billboards, indigentstanding inserts in newspapers products and samplings, as well as innovative schemes much(prenominal) as paying for a day of free parking in a downtown area. Strong brand image helps the company attract new customers to its stores, which leads to additional revenues. iron financial performance Starbucks has recorded robust financial performance in the past few years. During 2002-2006, the companys revenues, operating profit and clear up profit grew at a CAGR of 24%, 28.6% and 28.6% respectively. Moreover, the companys fairish return on equity and return on enthronisation during 2002-2006 were 19%, and 18% respectively, significantly higher than the industry averages of 15.3% and 11.3%.

deep financial performance enhances investor confidence and strengthens the financial position of the company. prominent scale of operations Starbucks has over 13,000 locations in 39 countries, which witness more(prenominal) than 44 million customer visits per week. The company employs over 146,000 people. Its competitors such as Diedrich Coffee, Green Mountain Coffee Roasters (GMCR) have a lower scale. Starbucks generated revenues of $7,787 million in 2006 against Diedrich Coffees $59.5 million and GMCRs $225.3 million in the same period. Greater economies of scale provide a cost advantage to Starbucks in the marketplace. Weaknesses Weak compliance function Starbucks has been regard in several legal proceedings, which taken overall point a... If you want to get a full essay, order it on our website: Orderessay

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