An analysis of Starbucks strengths, weakness opportunities and threats will be helpful in analyzing its strategic choice. The Starbucks has differentiation strategy at the corporate and business level. Its high quality differentiation strategy has made it possible for the company to provide better services to customers and helped the company to have a competitive edge over the rivals. The introduction of wireless internet and Starbucks digital network has improved the sales of company and also provided the customers with valuable experience. In the year 2010, the Starbucks introduction of wireless internet and Starbucks digital network in the stores lead to an increase in the sales of company increased by 4% after a decline in the previous year (Miller, 2010). The Starbucks digital network has become an important strategic asset for the company as it is providing the company with customer satisfaction and loyalty. These two aspects are important keeping in view the stiff competition.
The Starbucks decision to enter in India is another strong strategic move by Starbucks. India is a growing economy where Starbucks can provide its citizens with a new experience of coffee (Bose, 2011). India can be a source of growth for Starbucks in the near future as India is becoming more and more industrialized and its citizens have a tendency to switch to new styles of living where coffee can be a source of new tradition. The other country where Starbucks can expand is China. With a growth in coffee sales by 9% the china can be a source for competition for Starbucks where it can take head on with Macdonald’s (Burkitt, 2010).
The stock prices of Starbucks went down in the economic crisis of 2009-2009 (“SBUX Basic Chart |Starbucks Corporation Stock – Yahoo! Finance,” 2011). Although the stock prices of the company were leaning but its profits never went down. The company profits went up from 7.8 billion U.S dollars in 2006 to 10.7 billion in 2011(Starbucks Corporation, 2010).The economic crisis forced many companies to shut down but Starbucks continued to move forward with increase in profit every year. The Starbucks continued to expand itself in the last five years when it had 12,440 stores worldwide in 2006 and 16,858 in 2011(Starbucks Corporation, 2010). The Starbucks realizes that survival and market leadership lies in expansion of business globally to create a larger market which can face any environmental change. SWOT Analysis:
The strategic position and choice of Starbucks can also be examined by SWOT analysis.