Starbucks SWOT analysis

SOOT analysis is a tool for auditing an organization and its environment. SOOT analysis is the first stage of planning and helps marketers to focus on key issues. SOOT stands for strengths, weaknesses, opportunities and threats. Positive internal factor of Cutbacks – Strengths (characteristics of the business or project team that give it an advantage over others) Cutbacks Corporation is a very profitable organization, earning in excess of $600 million in 2004.

The company generated revenue of more than $5000 million in the same year. Strong brand image associated with quality coffee and excellent customer service (“The Cutbacks Experience”) Store location is an important competitive factor and Cutbacks has secured its presence in many of the most desirable corners of the planet. Relationship with their workforce (e. G. Employees treated as partners) Wide variety of product offerings Offers free Wi-If in stores and a comfortable space for its customers Negative internal factor of Cutbacks – Weaknesses (characteristics that place the team at a equidistant relative to others) Cutbacks products are more expensive than those offered by the competition, and customers could easily switch to lower priced alternatives in times of economic hardship.

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Health implications of coffee consumption are a matter of debate and many of the company’s products have high calories and fat content Organization has strong presence in the U. S. With more than % of their cafes located in the home market/ lack of international presence Rapid decline of satisfactory customer service as observed from comments on Miscalculated. Mom More focused on the “adult consumer”. Limited menu options for kids Positive external factor of Cutbacks – Opportunities (external chances to improve performance e. . Make greater profits in the environment) Cutbacks are very good at taking advantage of opportunities. In 2004 the company created a CD- burning service in their Santa Monica (California USA) cafe with Hewlett Packard, where customers create their own music CD. More strategic partnerships New distribution channels (delivery) Introducing new products and different distribution venues is a strategy which Cutbacks is implementing successfully, and it still offers many opportunities in the US and abroad.

Revamped food offerings, Juice, energy drinks and even potentially some alcoholic drinks are smart ways to leverage the brand and attract different kinds of customers. Holds the ability to be influenced by the opinions, thought and concerns its customers have on Miscalculated. Com Negative external factor of Cutbacks – Threats (external elements in the environment that could cause trouble for the business or project) Cutbacks are exposed to rises in the cost of coffee and airy products.

Entry new competitors and “copycat” brands Issues of negative publicity against the brand due to fair trade conflict with coffee bean farmers in Africa Recession or downturn in the economy affects consumer spending Success of lower priced competitors like McDonald’s and Dunking Donuts consumer trends toward more healthy ways and away from caffeine Comment: Cutbacks need to minimize its weaknesses and lowering its threats in order to Cutbacks SOOT analysis By Regina_YOGA better cater their consumer which having a healthy conscious in mind.

In this way hey can expand their market. Cutbacks should better control and set their products pricing, because in the recession or economic hardship, customers could easily switch to lower priced competitors. With Miscalculated. Com Cutbacks listen to what customers looking for in their products and improve it. This created a strong word of mouth. Although competition is rising from both lower priced alternatives and premium players, Cutbacks has enough differentiation power to sustain its market share and expand into different business lines and geographies.