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Posted: May 19th, 2023
Instructions
The SWOT analysis is often used to help managers understand the competitive advantage of their organization. It can also help them to make decisions to support the organization’s mission and vision in an ethical manner and help with strategic planning.
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Watch the video: Putting Your SWOT to Use which will provide you with what you need to know about SWOT and making it work for your organization’s strategic planning.
Review the abbreviated version of the Starbucks 2020 SWOT Analysis.
Considering the video and the Starbucks 2020 SWOT Analysis, answer the following questions:
Opportunities are to be prioritized in your strategic plan. How would you recommend that Starbucks prioritize Ready to Drink (RTD) coffee products in the U.S.?
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Weaknesses are important and need to be acted on quickly. What would be your first step to act on Starbucks expanding outside the U.S.? Why do you think this would work?
Threats need to be watched and monitored. Explain how you would plan to monitor weather disasters that could drive up the price of coffee beans?
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Opportunities are to be prioritized in your strategic plan. How would you recommend that Starbucks prioritize Ready to Drink (RTD) coffee products in the U.S.?
To prioritize Ready to Drink (RTD) coffee products in the U.S., I would recommend the following steps:
Market Research: Conduct thorough market research to identify the demand and potential market size for RTD coffee products in the U.S. This should include analyzing consumer preferences, competitor offerings, and market trends.
Competitive Analysis: Evaluate the competitive landscape to understand how other players in the industry are approaching the RTD coffee segment. Identify their strengths, weaknesses, and market share to gain insights and identify opportunities for differentiation.
Target Market Analysis: Identify the target market segments that are most likely to embrace RTD coffee products. Consider demographics, psychographics, and consumer behavior to understand the specific needs and preferences of these segments.
Product Development: Develop a high-quality RTD coffee product that aligns with the Starbucks brand and appeals to the target market. This includes considering factors such as taste, convenience, packaging, and pricing.
Marketing and Promotion: Create a comprehensive marketing and promotion strategy to raise awareness and generate demand for RTD coffee products. This should involve targeted advertising campaigns, collaborations with influencers or celebrities, and leveraging Starbucks' existing customer base.
Distribution Strategy: Establish strategic partnerships with retailers, supermarkets, convenience stores, and online platforms to ensure widespread availability of RTD coffee products. Consider both offline and online distribution channels to reach a broader customer base.
Performance Tracking: Implement robust tracking and monitoring mechanisms to measure the success of the RTD coffee products. This should include metrics such as sales volume, market share, customer feedback, and profitability. Regularly review and refine the strategy based on the performance data.
Weaknesses are important and need to be acted on quickly. What would be your first step to act on Starbucks expanding outside the U.S.? Why do you think this would work?
The first step to act on Starbucks expanding outside the U.S. would be to conduct a thorough market analysis to identify the most suitable international markets for expansion. This analysis should include factors such as market size, growth potential, cultural considerations, economic stability, and competitive landscape.
The reason for conducting a market analysis as the first step is to ensure that Starbucks has a deep understanding of the target markets. It helps in identifying the specific challenges and opportunities associated with each market and enables Starbucks to develop tailored strategies for success.
Once the target markets are identified, Starbucks can then focus on the following actions:
Localization Strategy: Customize the Starbucks experience to suit the local market preferences and cultural norms. This includes adapting the menu, store design, and marketing messages to resonate with the target market.
Partnership Development: Establish partnerships with local businesses, suppliers, or franchisees who have a strong understanding of the local market dynamics. This can help in navigating regulatory requirements, understanding consumer behavior, and leveraging existing distribution networks.
Talent Acquisition and Training: Recruit and train local employees who possess cultural knowledge and language skills. This ensures that Starbucks can provide an authentic and personalized customer experience.
Supply Chain Management: Develop a robust supply chain to support international operations. This involves sourcing high-quality coffee beans, managing logistics, and ensuring product consistency across different locations.
Marketing and Branding: Implement a targeted marketing and branding strategy to raise awareness and build brand equity in the new markets. This may involve localizing advertising campaigns, leveraging social media platforms, and conducting market-specific promotions.
By taking these steps, Starbucks can address the weaknesses associated with expanding outside the U.S. and increase its chances of success by aligning its operations with the unique demands and characteristics of each international market.
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