Question

Choose a product or product line from a fortune 500 company to a design a marketing plan. Once the product or product line is select, compose a SWOT Analysis.

After creating your SWOT Analysis, outline:

One internal strength that capitalizes on external opportunities

One internal strength that circumvents external threats

One opportunity that overcomes internal weaknesses

One strategy that minimizes internal weaknesses and avoids external threats.

Answer 1

Starbucks is a leading coffee retailer which has outlets across the globe. They offer variety of cofree and snacks customized to the local community at affordable price. If we closely observe the customer base we can see that they have a loyal customer base and most of the customers are repeat customers. The customers who often visit are middle aged customers. To summarize, most of the customers visiting the outlet are in age group of 18-50 years. The customer group is the same in both developed market and new markets. Every customer who prefers to have a fresh brew of coffee which is tasty and unique prefers visiting Starbucks over other coffee retail joints. Most customers buy some snacks accompanied by a drink or any other item which complements the meal.

One change the brand can bring about in the near future is to ensure they have product line which is catering to the health conscious customers too. Currently they either avoid these joints or use them only on minimal occasions. If Starbucks wants to lead this segment, then they should carter to all the customer segments and currently this segment is not among the target customer base. The existing customer base will also need to be retained and based on the market insights few tweaks into the existing product line should also be planned.

Strength

• Very popular brand and has high customer following and loyalty
• Well defined customer segmentation and services
• Offers variety of products which are not available in other fast food joints
• They have very strong franchisee network globally

Weakness

• Limited market share and growth in recent years
• Difficulty in managing large scale business model globally and follow same protocols and procedures
• Constant changes in the long term planning

Opportunities

• Expansion in to new markets
• Bring cross cultural products in existing regions and outlets
• Promote new product line focused on health conscious people

Threats

• Very high competition in all major markets
• Dynamic supply chain leading to increase in raw material and sourcing costs
• Health concerns among conscious people regarding fast food

The main internal strength that capitalizes the external opportunity is the brand power and the variety of services they provide. With lot of customers across globe moving towards a fitter lifestyle, Starbucks can leverage the wide product knowledge they have and offer customized solutions to all customers. With a very high loyal customer base, every change which reciprocates the customers unspoken needs will be highly successful. The same can be used to ensure other competitors and external threats do not get higher market share. There is constant changes needed in the menu and only a retailer who has huge following and product knowledge can beat opposition and get the market share.

One weakness they have faced recently is the limited growth they have had. This can be overcome by expanding into new markets where such premium coffee shops are not yet setup. One strategy that can reduce the internal weakness and avoid external threat is product diversification and expansion. This is the way forward to reduce the threat of limited growth and external threat from other vendors. There is no major complaint or feedback that is obtained from the customers and this shows that the product is highly appreciated by the customers. If the internal processes are spot on, the only way to improve the revenue and bottom line is by expanding more into different neighborhoods and expanding the customer base. Using such a strategy Starbucks can get better benefits in the market both long and short term.