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Starbucks analysis. Starbucks Coffee in Malaysia. Starbucks face some challenges of modifying their existent strategies to gain and sustain their competitive advantage in a rapidly changing environment.

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Introduction

EXECUTIVE SUMMARY In this assignment, the organization that has been chosen is Starbucks Coffee in Malaysia. Starbucks face some challenges of modifying their existent strategies to gain and sustain their competitive advantage in a rapidly changing environment. As a store manager, below are some tools using in Starbucks which its internal and external environmental analysis been evaluated thru: * PESTLE analysis * Value Chain analysis * SWOT analysis In order to compete with other competitors, have proposed several marketing strategies to the Managing Director, in which Starbucks may aim its sales at the young crowd, focusing more on the quality of its products and services to improve its profitability and achieve its long-term business vision and mission. Through the analysis tools stated above, am required to evaluate three strategic options which are available in Starbucks, and then select one of the options evaluated that gives the best fit strategic option which can help Starbucks to strengthen its position and sustain its growth either locally or globally. CASE IN POINT: STRARBUCKS Starbucks is recognized as the most successful coffee chain in the past few years and has operated its business from a coffee bean seller to one of the world's most familiar coffee houses. ...read more.

Middle

Because of the quality of the products that they offer, Starbucks prides itself by offering limited coffee products that customers cannot come across in other coffee houses. TYPES OF PRODUCTS AND SERVICES Starbucks buys and bakes high-quality whole bean coffees and sells them, with fresh-brewed coffees, cold blended beverages, Italian-style espresso beverages, various quality teas, pastries, sandwiches, ice-creams, mostly through its outlets. A variety of ready-to-drink beverages are produced, and Starbucks licenses its trademark through outside channels such as licensed stores, which known as specialty operations. In addition, heated-breakfast sandwiches and lunch packages are offered through its outlets. Furthermore, a free-high-speed access of internet via Wireless Internet Access (Wi-Fi) provided at every Starbucks outlets. Customers can bring along their laptops for internet-surfing, gathering with friends, and also doing their business while enjoying their favorite Starbucks coffee in a designed air-conditional and friendly environment. Berjaya Corporation also runs its first drive-thru in Setia Alam, Shah Alam. With this drive-thru service, customers would not have to hardly look for parking in the hassle parking place. TARGET MARKET When first Starbucks started, they targeted at college students, with a little higher than normal income levels, affording to consume a cup of coffee and spending time with friends at Starbucks outlets. ...read more.

Conclusion

If coffee turns out to be a trend, they must diversify their business where other competitors have invested in. Reliance on beverages innovation is another weakness. Starbucks' stocks are in long-term risk when a slowdown in market growth and this will cause a lower valuation. Starbucks' performance would be adversely affected by diminishing return from beverages innovation. OPPORTUNITIES: Starbucks faces several opportunities. One is the market-expansion in different market niche such as lodging its products to the youth, or sells to other companies which expand its market at lower cost than opening new outlets. Starbucks has also expanded its beverages into a Starbucks branded coffee liqueur drinks, such as liqueurs flavored with coffee. An overlap among consumers of liqueurs and consumers loyal to Starbucks brand gives the company a strong return. THREATS: The supply and prices of coffee are highly unstable. The factors such as weather and economic conditions may expose the quality standard of coffee and affect Starbucks' business. Worldwide coffee market is very competitive. Competitors of Starbucks consist of specialty coffee houses, restaurants, McDonalds and etc. Starbucks must be aware of competition among all levels and maintain its operational performance as it wishes to maintain its status as world's leading specialty coffee retailer. ...read more.

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