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Situation Analysis and SWOT Analysis: Starbucks - Case Study Example

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"Situation Analysis and SWOT Analysis: Starbucks" paper argues that proper communication with the customers will make the customers aware of the fact with regards to what they can benefit from the products of the company and help the customers in making their lifestyle better.   …
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Situation Analysis and SWOT Analysis: Starbucks
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Download file to see previous pages The company also has certain products like bottled coffee drinks; ready to drink coffees in packs, whole grain coffee beans, and many others that increase the competition for the company as many more companies present in different segments in the same industry are also big rivals for the company. The company faces main rivals from its competitors like Nestle, Procter & Gamble, and Kraft, etc. The company also has strong competition from the local coffee makers which are also been preferred by customers in a huge way.

The coffee industry is been dominated by Starbucks and building such a huge capital and distribution chain for a new company is very difficult. The size of the company to which Starbucks has grown over the years and spread its business across to the whole world, it is very difficult for any newcomer to set up its business and compete neck to neck with Starbucks. Thus the threat for Starbucks from new entrants is very low and they just need to keep growing and expanding their business in new dimensions (Böhm 46-63).
In the case of the specialty coffee industry, substitute products are generally non-alcoholic drinks like tea, fruit juices, soft drinks, energy drinks, etc. These are the few substitutes that can replace coffee and people can look to consume those products in place of coffee. Still, the specialty of special coffee remains the same and people still look to have a cup of special coffee than the other substitutes from time to time. Hence this threat is not considered so serious in the case of Starbucks.

Starbucks has sometimes faced problems of pollution and waste management regulations and restrictions in various countries. The wastes that are eliminated from the stores and factories of Starbucks do cause a lot of environmental problems to people. Few countries have implemented strict rules for environmental protection for Starbucks.
The changing price of coffee beans in various countries has affected the buying behavior and production of Starbucks.  ...Download file to see next pages Read More
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