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Tuesday, September 27, 2005

Starbucks Case Study Analysis

SWOT ANALYSIS Strengths " Brand name recognition " Strong US sales " Industry leader " 1,500 stores in 28 countries " Sales grew 23%, while EPS managed a 21% increase. " In 2000, Howard Schultz transitions from chairman and CEO to chairmen and chief global strategist. " Low interest rates to fund growth " Quick to react to changing international business environment " Starbucks cutting international store expansion by 50 stores (primarily in Japan) " Cutting overhead costs to reflect slowed growth " Starbucks has 1106 licensed and 426 company owned international stores. " Last two years, Starbucks has invested in international infrastructure " International operations to break even in 2003 and make a profit in 2004. " Mexico expansion on target (7 stores) " The Spain market is strong. " Starbucks concept well received in Mexico. " Strong existing partnerships " Lots of international companies wanting to partner with Starbucks

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