CHAPTER FOUR: ANALYSIS & FINDINGS
4.1. Analysis for Problem number one
Strengths:
One of the most important strengths of this company is surely their size and brand name. Operating in more than 60 countries and having almost 40% of the market share in U.S. Starbucks is well known coffee name. Globally compared Starbucks is ranked 91st among all brands around the world in 2013. They are very effective in leveraging their equity by licensing its brand and by merchandising products. With such a powerful market position and well recognized brand name Starbucks can have big advantage over competition and definitely use economies of scale to gain higher profit. International and domestic expansion brought them superior relationship with suppliers.
High quality products were kept despite their size and standardization as the easiest way, and their main accent is on quality over quantity.
Exclusive locations around the world are something they can be recognized with. Targeting high traffic locations that are close to variety of settings brings them competitive advantage even though these are coming at high cost. This has brought them success in the past and they have no plans to change this strategy. Another strength of Starbucks is laid back and relaxing atmosphere around their stores with free Wi-Fi, good music and outstanding service. Nothing can replace your home but spending time at Starbucks is closest you can get to that.
HR Management in Starbucks is well known for