Starbucks Strengths and Weaknesses

later on reading Starbucks Management Discussion and summary portion of its 10-K, it is app arnt that the corporation currently possesses a highly competitive position and progressive counsel strategy. Starbucks top position in its industry and concern strategy comes from the incident that this comp all has multiple areas of efficiency and lacks overwhelming enervatednesses. Strengths and impuissancees with regard to a staunch like Starbucks are based on the inhering concomitantors relating to a company.The internal analysis of Starbucks shows that it enjoys much strength as a company. When analyzing the strategic management of a company, a strength is defined as a planetary houses resources and capabilities that can be used as a root word for developing a competitive advantage (QuickMBA). The Management Discussion and Analysis section of the Starbucks Annual Report features many strengths according to this definition. Starbucks capabilities go route beyond simply selli ng coffee at Starbucks shops in America.In m angiotensin-converting enzymetary 2012, Starbucks experienced a 7 percent growth in globose store sales, 50 percent sum up in contrast Development, and 20 percent raise in licensed stores revenue (SBUX 2012 Annual Report, 25). This fact alone presents multiple strengths Starbucks has. Starbucks has stores and a positive posture implanted in multiple countries divided into the three sectors of the Americas, EMEA (Europe, Middle East, and Africa), and CAP (China/Asia Pacific). Additionally, Starbucks maintains the operating discussion section of Channel Development which focuses on the sale of Starbucks and Tazo branded K-Cups and some other swallow innovations.As stated before, this segment of Starbucks operations witnessed a 50 percent increase in revenues in fiscal 2012 which shows how vehement Starbucks as a strong really is. On top of these optimistic facts, Starbucks simply continues to show its strength with regard to its m arket dominance and brand-name recognition throughout America and other countries. On the other side of the internal analysis of Starbucks, few weaknesses are present within the company. A weakness can be looked at as the absence of certain strengths. For example, a lack of secure protection, weak brand name, poor reputation among customers, high cost structure, lack of bother to the best natural resources, or a lack of access to severalize distribution channels can all be classified as a Companys weaknesses (QuickMBA). Starbucks, however, does not appear to possess any of these weaknesses. Especially since Green Mountain Coffees expiration of their patent for K-Cup, Starbucks has not been hindered by access to key distribution in their Channel Development sector (Daily Finance).This area of focus may be one of Starbucks weaknesses though because, unlike Starbucks franchises throughout America that basically stand uninfluenced compared to other coffee shops, Starbucks branded K-C ups compete with many other workable brands such as Green Mountain Coffee in the homemade portable coffee sector of the coffee industry. Additionally, Starbucks expansion into other countries, although proving to germinate positive income, can be looked at as a weakness. For example, Starbucks presence in Europe has received some resistance due to the strong European cafe culture and preference for different regional tastes (NY Times).In summation, Starbucks has a positive future and experienced a fiscal year alter with strengths and few weaknesses in 2012. Its main strength as a regular is the powerful brand and presence that has been open by Starbucks. This strength is supplemented by Starbucks expansion into multiple countries and different areas within the market for coffee including K-Cups. Starbucks weaknesses count to be associated with its strengths stemming from expansion, which is seemingly normal and acceptable.To increase the firms strengths and decrease its weakne sses, Starbucks senior management plans to focus on achieving sustainable growth from established international markets while at the same time investing in emerging markets, such as China (Starbucks Annual Report, 27). Additionally, Starbucks management seeks to poke out upon its Channel Development segment by developing new innovations and ready-to-drink beverages, which leave simultaneously bolster their internal strength and disintegrate the current weakness of having less establishment and dominance in this area of the coffee industry.