The SWOT analysis is often used to help managers understand the competitive advantage of their organization. It can also help them to make decisions to support the organization’s mission and vision in an ethical manner and help with strategic planning.
Watch the video: Putting Your SWOT to Use which will provide you with what you need to know about SWOT and making it work for your organization’s strategic planning.
Review the abbreviated version of the Starbucks 2020 SWOT Analysis.
Considering the video and the Starbucks 2020 SWOT Analysis, answer the following questions:
Opportunities are to be prioritized in your strategic plan. How would you recommend that Starbucks prioritize Ready to Drink (RTD) coffee products in the U.S.?
Weaknesses are important and need to be acted on quickly. What would be your first step to act on Starbucks expanding outside the U.S.? Why do you think this would work?
Threats need to be watched and monitored. Explain how you would plan to monitor weather disasters that could drive up the price of coffee beans?
Full Answer Section
- Partner with retailers: Expand distribution channels beyond Starbucks stores, making RTD products available in grocery stores, convenience stores, and gas stations. 5. Innovate and differentiate: Regularly introduce new flavors, formats, and brewing methods to maintain consumer interest and stand out from competitors. 6. Monitor performance and adapt: Track sales data and customer feedback to adjust strategies and offerings based on market response.
By focusing on these steps, Starbucks can position its RTD coffee products for success in the competitive U.S. market.
Addressing Starbucks' International Expansion Weakness
My first step to address Starbucks' weakness in expanding outside the U.S. would be:
- Conduct a comprehensive market analysis: Identify promising international markets with high coffee consumption, cultural openness to Starbucks' brand, and favorable economic conditions. 2. Partner with local companies: Utilize the expertise and knowledge of local partners to navigate cultural nuances, regulations, and logistics within the chosen market. 3. Adapt offerings to local preferences: Modify menus, store design, and marketing strategies to cater to local tastes and consumer expectations. 4. Emphasize ethical sourcing and sustainability: Showcase commitment to responsible coffee sourcing and environmentally friendly practices to resonate with global consumers.
This collaborative approach, with careful adaptation and emphasis on brand values, can increase Starbucks' success in new international markets.
Monitoring Weather Disasters and Coffee Bean Prices
Here's how Starbucks could monitor weather disasters and their impact on coffee bean prices:
- Develop partnerships with weather and crop forecast organizations: Gain access to real-time data and early warnings about potential disruptions to coffee-growing regions. 2. Diversify sourcing: Establish relationships with coffee producers in various geographical regions to minimize dependence on any single area. 3. Monitor futures markets: Track coffee bean futures contracts to anticipate price fluctuations and potentially lock in prices through hedging strategies. 4. Develop contingency plans: Prepare alternative sourcing options and cost-saving measures to mitigate the impact of price increases. 5. Communicate transparently: Inform stakeholders about potential price changes due to external factors and explain efforts to minimize impact.
By implementing these measures, Starbucks can be proactive in monitoring and mitigating the risks associated with weather disasters and their impact on coffee bean prices.
It's important to note that these are general recommendations, and further analysis and adjustments might be necessary based on specific data and Starbucks' strategic context.
Sample Answer
Prioritizing RTD Coffee in Starbucks' US Strategy
Based on the information provided, here's how I would recommend Starbucks prioritize Ready to Drink (RTD) coffee products in the U.S.:
1. Conduct market research: Understand consumer preferences for RTD coffee, including flavors, formats, price points, and preferred purchase channels. 2. Leverage brand recognition: Utilize Starbucks' strong brand image and loyalty programs to promote RTD offerings, making them easily identifiable and accessible. 3. Target specific demographics: Develop marketing campaigns tailored to relevant consumer segments who might find RTD convenient and appealing.