A 5 page paper reviewing Starbucks Coffee Corporation. Specifically, a SWOT, strengths, weaknesses, opportunities, threats, is conducted on the company. Bibliography lists 1 source.
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* _ Quality product: Starbucks purchases only high quality coffee beans, such as the Narino Supremo crop. They also roast the beans differently and will trash an entire batch if the
sample is not deemed to be perfect. * _ Labor/management relations: companys policy of mutual respect and the profit sharing plans results in high morale and greater production. Employees are empowered
with a laid-back atmosphere. * Slow-growth policy: the company fully researches a market before entering it and then does not open another store until it fully dominates this one. This
is also a weakness. Still, this is one of the fastest growing companies in the country. In 1995, for instance, sales grew by 63 percent. * _ Market selection:
Starbucks opens stores only in areas where their direct-mail market is strong. The company tracks addresses of mail-order customers to determine the highest concentration in a city, then opens a
store in that location ensuring a built-in customer base. * International partnerships: Starbucks has entered a joint venture with a Tokyo-based company which will allow greater expansion into Asia.
* Marketing approaches: diverse marketing allows Starbucks to penetrate additional markets. Examples include: cafes and carts in hospitals, office buildings, banks, supermarkets, and shopping malls. They also have a frequent
coffee buyer program in which the customer receives a free half-pound of coffee when they have purchased a certain amount. Weaknesses * Slow growth policy: normally a good policy
for beginning companies, this may hurt Starbucks, particularly in the East coast market. Analysts suggest the growth does not equal the companys potential. * _ High capital needs: extensive capital is
required to open each Starbucks coffee shop. None of the four most threatening competitors sell exclusively through cafes. * Attrition: while Starbucks has one of the lowest turnover rates
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