Starbucks France: SWOT analysis

Résumé du document

Taking its name from a character of the book Moby Dick, Starbucks specializes in coffee retailing. It is currently the most important chain in the coffee industry.

When Starbucks Coffee Company was founded in 1971 by Jerry Baldwin, an English teacher, Zev Siegel, a history teacher, and the writer Gordon Bowker, it was a business specialized in coffee.

In 1987, the founders sold their company to Howard Schultz, who named it Starbucks Corporation. The firm became international by opening and buying stores in many countries. As a proof of being a leader in its market, Starbucks Corporation is quoted on the Stock Exchange.

The main activity of Starbucks is to manage coffee shops. However, Starbucks Corporation also develops its own brand in a roasting activity.
The turnover of the firm is, according to Datamonitor, $9,411.5 million in the financial year ended 2007.

Extraits

[...] As they play it fair trade, Starbucks maintains good relationships with suppliers. Weaknesses Starbucks products are expensive and not competitive, as we have already explained, for instance in comparison with McDonald's products. As shops are located in very attractive areas, they tend to be small and their rent is very expensive. Profits declined in the third trimester of 2008. Opportunities Starbucks is known for innovation and can bring new products to be even more successful. Technological advances can lead to it. [...]

[...] Indeed the latter has known a growth of between August 2007 and August 2008. Source: La restauration touchée par la crise, Agroalimentaire News [online] Threats The market of coffee stores is growing; the concept attracts more and more competitors. The US market, where Starbucks realizes the most of its turnover, is saturated. The price of coffee is rising. The company suffers from a negative image from some farmers complaining in poor supplying countries. Starbucks has to face the global economic slowdown. [...]

[...] In 1987, the founders sold their company to Howard Schultz, who named it Starbucks Corporation. The firm became international by opening and buying stores in many countries. As a proof of being a leader in its market, Starbucks Corporation is quoted on the Stock Exchange. The main activity of Starbucks is to manage coffee shops. However, Starbucks Corporation also develops its own brand in a roasting activity. The turnover of the firm is, according to Datamonitor, $ million in the financial year ended 2007. [...]

[...] There are up to 400 licenses coffee shops with the name of Starbucks in the area Europe-Middle East. - Diversification of the activity Starbucks does not only sale drinks, it also offer cakes, ice cream, kitchen tools, coffee machines Starbucks created a website to educate customers about coffee. Products are sold out of coffee shops as well: Starbucks has now contracts with companies, airlines, hotels, hospitals Starbucks Corporation has bought subsidiaries such as Tazo Tea Company in 1999, Seattle's Best Coffee and Hear Music. [...]

[...] However, Starbucks should adapt its offers to the country it comes in: relationship with coffee differs according to the culture, and all cultures do not look for the “American style”. For instance, the company had troubles to conquest the French market. According to Bernard Boutboul, the CEO of the Gira Sic Council, specialized in catering, Starbucks is of the greatest marketing concepts, but it is not adapted to the French culture” (source: Starbucks se brûle les doigts sur le marché français). [...]