MCO 104 MARKETING Case Study: Swot Analysis of Starbucks in Australia
Key Learning Outcomes
By the end of the case, students should be able to:
- Use our swot analysis example to gain an overall understanding of how companies use the Swot framework to gauge their strengths and weaknesses before they enter a market.
- Use our swot analysis example to gain an overall understanding of how companies use the Swot framework to uncover key opportunities for exploitation as well the threats they must mitigate before they enter a market.
- To apply strategy business models and frameworks such as Swot etc to real company cases.
Assignment Question: In 2000 U.S. coffee chain Starbucks launched in Australia in the context of the global expansion. Besides its efforts in 2008 Starbucks suddenly closed 61 stores to the tune of a reported $143 million loss. In 2014 they handed over the remaining 24 shops to the Withers Group, which operates the 7-11 chain in Australia. They are currently examining the relaunch of Starbucks in Australia and they have hired you as a consultant to proceed with the relevant analysis. In this context you need to conduct a detailed SWOT analysis for Starbucks in Australia.
1.0 INTRODUCTION
Starbucks is the largest coffeehouse chain in the world, and the second biggest in brand value with $47.753 billion. Founded in 1971 in Seattle, the company has grown from strength to strength and now operates in 78 countries, with over 30,000 coffee shops globally. Despite being a major brand name, the company’s efforts to establish itself in Australia failed miserably when it had to close 61 cafes and coffee shops.
However, the company is today working on relaunching in the country once again.
Using a SWOT analysis, the report will analyze the company’s strengths, weaknesses as well as external opportunities and threats and how it can match its inner strengths with available opportunities to relaunch in the country.
Figure: Starbucks net revenue (2003-2019)