Ch. 2 - Strategic Planning for Competitive Advantage

1. SWOT analalysis

 - Strangth: You can find same menues, and flavors in differrent countries without menu board. In addition, If you have Starbucks card, you can add to your smartphone application easily. Therefore, you can buy a cup of coffee with your smartphone, not with a heavy, thick, and old-fashioned wallet.

 

Starbucks has also machines that can make Starbucks drinks at home. If you have this machine in your home, you don't need to go to Starbucks branches in a freeze day.


Homemade Drinks Machines of Starbucks

 - Weakness : First of all, If company made new drinks, they have to consider all of worldwide trands. secondly, changing style is really hard to company. customer used to your drinks, so if company change something in drinks, customer will recognize it immidiately. As a result, company can be turned over.


 - Opportunity : Starbucks is a worldwide coffee shop, so company has many customers in differant countries. Their customer can be a each opportunity. In other words, company can give reseach to customer for new items. They will get responses by sales revenue.


 - Threats : There is many risks. First of all, coffee shop is already red-ocean. So many coffee franchises are upcoming, like The Coffee Bean and Tea Leaf, Aroma Espresso bar, and local single coffee shops, too. Therefore, if company loss their truth from customer, in the ways of taste or service, customer will find another stores instead of Starbucks.

 

 

Product Strategy

Starbucks makes 3~5 new drinks every seasons. Mocha cookie Frappuccino and Java Chip Frappuccino that blended beverages for last summer season, and Pumkin spice Latte and Salted caramel Mocha that fit to cooler weather beverages for this coming fall season.

Those seasonal drinks attrack people who want to feel changing weather. also, those drinks represent things that people want to feel in each season. Blended beverages represent cool things for summer, and Pumkin Latte or Caramel Mocha represent warm things because of low temperature.

Distribution strategy

Have you ever work through fifth avenue in New york City? How many starbucks chains can be found? you can find at least one Starbucks chain in every miles. It means, if you want to drinks any Starbucks coffee, you can get your coffee in 5 minutes on New York City. Even though, if you want your drinks in the midnight or 3 a.m, you can get your drinks in some chains near 42nd street Time Square. In addition, if you go to Japan,korea, china to trip, you can find Starbuks drinks exactually same one that you had in New York City.

Promotion strategy

Starbucks is always on promotion at least one. Basically, Starbucks card is a way of promotion. Starbucks membership have three levels, welcome, green, and gold. each level have different own benefits. For example, you can get a free refills in the stores on green level. Secondary, StarBucks have Happy Hours. If you got drink before 12p.m, you can get same drink after 12p.m with your vaild receipt.

Price Stategy

Someone said Starbucks' tall size( It is small size on the other coffee shops) coffee is so expansive. It could be a ture or fulse. tall size regular coffee is 12oz and $1.93. however, venti size regular coffee is 24oz and $2.25. Compare those two coffee. The portion is exactly two times. Contrastively, the price gap is only $0.32. It says, if you ordered bigger one, you can get your bigger drinks with two quaters.