<\/span><\/h4>\n\n\n\nRecently, Starbucks has acquired over six companies which are now contributing to cementing its foothold in the relevant sectors. These acquisitions include Seattle\u2019s Best Coffee, Teavana, Tazo, and three other such companies.<\/p>\n\n\n\n
<\/span>Thoughtful Diversification<\/span><\/h4>\n\n\n\nStarbucks often believes in tried and tested items instead of going all-in for new and novel delicacies. This allows diversification of products without affecting short-term revenue streams.<\/p>\n\n\n\n
<\/span>High Quality & Taste Standards<\/span><\/h4>\n\n\n\nStarbucks spares no expense in ensuring the highest standards of quality and taste in its products across the board. This is what makes customers come back for more.<\/p>\n\n\n\n
<\/span>Re-Investment & Planning<\/span><\/h4>\n\n\n\nThrough rigorous reinvestment of profits back into the company and sound financial planning, Starbucks is enjoying a financial upper hand that its competitors can only dream of.<\/p>\n\n\n\n
<\/span>Excellent Employee Treatment<\/span><\/h4>\n\n\n\nFrom raising wages of baristas to cordial relations with employees, Starbucks is one of the idolized places to work and is often considered to be the best place for employees in America.<\/p>\n\n\n\n
<\/span>Loyalty Incentives<\/span><\/h4>\n\n\n\nThe company has a comprehensive plan of incentives to reward its loyal customers. This allows both the company and the customers to stay connected with each other.<\/p>\n\n\n\n
<\/span>\ud83e\udd12 Weaknesses<\/span><\/h3>\n\n\n\nWeaknesses are often inherent flaws in the operations or business model of a company, such as Starbucks, to prevent it from working at its optimum level.<\/p>\n\n\n
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<\/span>Costly Products<\/span><\/h4>\n\n\n\nWhen compared with both its direct and indirect competitors, such as McCaf\u00e9 and Dunkin Donuts, Starbucks\u2019 products are higher in price. This hampers the brand\u2019s penetration of value-centric consumers who prefer to go to other coffee shops.<\/p>\n\n\n\n
<\/span>Lack of Ownership<\/span><\/h4>\n\n\n\nIt is hard to own coffee blends and beverages that are readily available in the market with slight changes. This is another weakness in Starbucks\u2019 business model as they can\u2019t own the products that give the company comparative advantages.<\/p>\n\n\n\n
<\/span>Poor Consumer Adaptability<\/span><\/h4>\n\n\n\nIn many cases, consumers failed to appreciate and adapt to the products offered by the company, resulting in short-term losses and client abandonment.<\/p>\n\n\n\n
<\/span>Controversies<\/span><\/h4>\n\n\n\nFrom tax avoidance in Europe to poor procurement practices for the coffee beans as well as violation of fair coffee trade, Starbucks has faced backlashes often resulting in a bad reputation and poor brand image for the company.<\/p>\n\n\n\n
<\/span>Compromised Product Batches<\/span><\/h4>\n\n\n\nStarbucks has, time and time again, recalled batches of products from Starbucks coffee shops that were in high demand. Many products were found to have traces of unwanted particles. This resulted in plummeting demand.<\/p>\n\n\n\n
<\/span>Flop Specialty Drinks<\/span><\/h4>\n\n\n\nStarbucks is used to having the darling of all. Yet, the brand has managed to offer some of the worst specialty drinks over the years.<\/p>\n\n\n\n
<\/span>Starbucks External Factors<\/span><\/h2>\n\n\n\nExternal factors of Starbucks include the opportunities that can allow the company to overcome its weaknesses or the threats that can jeopardize its future.<\/p>\n\n\n\n
<\/span>\ud83e\udd11 Opportunities<\/span><\/h3>\n\n\n\nOpportunities that Starbucks can avail and exploit for its benefit are given in the section below.<\/p>\n\n\n
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<\/span>New Markets<\/span><\/h4>\n\n\n\nAlthough Starbucks is a global brand, its main presence is in the US. By expanding further in the emerging markets, such as Asia Pacific and India, the company can exploit immense growth potential.<\/p>\n\n\n\n
<\/span>Diverse Portfolio & Product Differentiation<\/span><\/h4>\n\n\n\nBy diversifying its products from the competitors, such as Dunkin Donuts, and offering a more tailored coffee solution to its customers, Starbucks can replenish its drying revenue streams.<\/p>\n\n\n\n
<\/span>Collaborations & Alliances<\/span><\/h4>\n\n\n\nInstead of entering or acquiring established companies with hefty price tags, Starbucks can get collaborations or chalk out alliances with other brands that cover a vast range of customer bases.<\/p>\n\n\n\n
<\/span>Re-Enforcement of Online Channels<\/span><\/h4>\n\n\n\nDuring and after the pandemic, coffee lovers are shy to come out every time they need a coffee. Instead, they are relying on third parties to bring their favorite beverages to them. This is where Starbucks Corporation can step up and offer curbside pickup or specific locations.<\/p>\n\n\n\n
<\/span>Starbucks Delivery & Subscription<\/span><\/h4>\n\n\n\nThrough dedicated Starbucks coffee delivery and subscription channels, Starbucks can easily connect with its customers. This will open new avenues for price discrimination and customer loyalty options for the food and beverage company.<\/p>\n\n\n\n
<\/span>\ud83d\ude28 Threats<\/span><\/h3>\n\n\n\nThreats are those external factors that can extremely disturb its revenue generation for the short term and sustainability in the long run.<\/p>\n\n\n
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<\/span>Cut-Throat Competition<\/span><\/h4>\n\n\n\nMany competitors in the coffee and similar beverages market offer better pricing than Starbucks\u2019 products. This can disturb the company\u2019s position in the long run.<\/p>\n\n\n\n