Starbucks: Major Threats and Opportunities to Improve Coursework

Introduction

Starbucks is a name that can never be forgotten by a coffee lover. A worldwide supplier of premium quality coffee in retail outlets of different countries apparently has no visible threats that might pull them down from their current position. However, in reality, like any other company, Starbucks also is exposed to certain threats that might cause harm to the image and profitability of the company if not taken care of properly. This section of the study mentions some of these threats that Starbucks should consider seriously. The section also mentions some scopes for improvement of the company for a better future (Conklin, 2006).

Some of the Threats

For a company like Starbucks, the threats like “opposition from rival companies, new competitions in the same field, social or political factors” (Malhotra, 2009) are quite common. The company has been taking care of these elements since the formation and will not be affected by them unless something substantial happens. This paper will talk about certain other factors that the company should think about.

1. Price of the products in the other countries – Because Starbucks makes blends from premium quality beans their price is also expected to be high. In certain countries outside the US, people might not be able to afford that much cost for a cup of coffee or related products. Even if people come there for the best coffee experience they are not likely to repeat the visit very soon. The retail coffee shop will become a symbol of high-status people who are few in number (Conklin, 2006).
2. The caffeine factor – Researches have proved that though coffee is a good stress-buster the caffeine content in the beverage is not very good for health. People might like to cut down on their coffee intake because of this revelation about caffeine.
3. Calorie consciousness- Today everybody is quite aware of what they are eating or drinking or how many calories they are consuming. Coffee is high in calories. The ingredients that give the coffee a smooth and rich blend make it heavier in calories. Apart from this the pastries and other confectioneries also contain high calories. In this situation apart from a few occasions, people would like to stay away from these high-calorie food and drink. This is one of the potential threats that might force the company to think about some substitute product line as well (Malhotra, 2009).
4. Duplication of the Logo – A big threat might be the duplication of the logo of Starbucks in some countries that might cause a diversion of customers’ traffic in the wrong direction because of inability to differentiate from the original company. That not only would take away the potential customers from the Starbucks retail shops but it will also harm badly the image of Starbucks as projected in the vision by supplying substandard products.

“Starbucks wants to be the most respected and recognized brand of the world” (Malhotra, 2009). It is therefore necessary take care so that the brand image is not harmed anyway. And regarding the other issues compatible price range and health conscious products would become very handy.

Some opportunities for Starbucks

There are threats no doubt for the company in the way of realizing its vision but certain opportunities capable to counter the threats is also there. Some of them are as follows:

1. There are more countries apart from the ones where Starbucks now operates who will be happy to have the company there. The broader is the base the broader is the profitability
2. The company can cater to the health issue by introducing health and organic drinks including those suited for the kids.
3. Delivery of foods in the offices and even homes can be a good diversification option (Enz 2009).
4. The company can consider Franchise opportunities
5. Local people should be considered. Local choice of flavors and local capacity to spend need to be considered.
6. Starbucks need to reach out to the community to make people aware of their responsible image in the countries and localities they are situated. People may be reached out through charity programs (Malhotra, 2009).

Conclusion

Starbucks is a fundamentally strong company capable of tackling challenges. But if the threats and opportunities mentioned here are considered seriously they will be able to keep problems at bay for a very long period.

References

Conklin, D. (2006). Cases in the environment of business: international perspectives. New York: SAGE.

Enz, A. (2009). Hospitality Strategic Management: Concepts and Cases. London: John Wiley and Sons.

Malhotra, N. (2009). Marketing Research: An Applied Orientation. London: Pearson Education.