Some of the main strengths that I have discovered since blogging about Starbucks include their product differentiation, customer loyalty, and brand power. The company continues to develop new products to set their company apart from competitors. After researching Starbucks it appears that they have some of the most loyal customers of any company in their industry. These coffee drinkers love their Starbucks and find that competitors fall short with their renditions. Finally, the amount of brand power that Starbucks carries is amazing! It has become such a common brand that some refer to coffee as a cup of "Starbucks".
Weaknesses for the company include too many expansions, and pricey products. Starbucks over extended themselves a few years ago by opening too many stores too fast. This resulted in the close of several stores both in America and internationally. Also, Starbucks competition has recently increased, with restaurants like McDonald's offering flavored coffees at a lower price. This same price competition could prove to be a weakness for the company in the future.
SBUX- $25.94 ( as of close of business Oct.1, 2010)
http://www.starbucks.com/
Kala, I agree that Starbucks has an incredible following of loyal customers and that is one of the company's biggest strengths.
ReplyDeleteStarbucks definitely have customer loyalty on their side. I can honestly say I know someone who will not go without a cup of Starbucks anytime they go past one, and they get mad when they are told no.
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