Weakness Starbucks chargers its servings at premium prices As the cost of

Weakness starbucks chargers its servings at premium

This preview shows page 10 - 13 out of 40 pages.

Weakness Starbucks chargers its servings at premium prices. As the cost of living in Malaysia is rising, Consumers are less likely to visit the Starbucks outlets as they are becoming more price conscious (Euromonitor, 2017) . In addition, Starbucks products are also imitable. Competitors such as San Francisco coffee, Café Bene, Coffee Beans and McCafe can easily imitate Starbucks products and charge them at a lower price. Therefore, Starbucks has introduce price related promotional strategies such as holiday gift packages, loyalty card with bonus points as well as discounts on breakfast menu’s to keep the existing customers to visit the allow outlets as well as to attract the new ones and to differentiate itself from the competitors (Huang, Chang, Yeh, & Liao, 2014) . Other than that, As Starbucks is the leader in the Coffeehouse industry, there is a chance that Starbucks may become too confident with its position in the marketplace (Karaduman & Sehrawala, 2015). This could potentially be damaging for the company in the as this may hinder the company’s innovative strategies in the long run.
Image of page 10
Opportunities While Growing concerns of health among Malaysians can be consider as a threat, it can create an opportunity for a new product development. In response to the increasing health awareness in Malaysia, Starbucks has the option to expand its product offerings by introducing additional tea servings to address the health awareness among Malaysians (Euromonitor, 2017). In addition, there is also a strong growth in the Mobile shopping in Malaysia as the usage of mobile application among Malaysians has increase due to its convenience, ease of usage and increase in availability (Malaysian Digest, 2015). Therefore, there is an opportunity for Starbucks to improve its mobile application by increasing its stability and adding additional features for the convenience of its customers. As a result, Starbucks will be able to fulfil its goal of building a stronger customer relationship in 2017 (Euromonitor, 2017). Threats Although the coffee culture is high in Malaysia, the threat of new entrance is high relatively high due to the growth of independent Coffee shops. In 2016, there was a 10% growth of the independent coffee shops and this is a threat to Starbucks as these coffee shops offers variety of beverages, foods and set meals at low prices. Due to these offerings, Malaysians are attracted to visit these independent coffee shops and thus a threat to the Starbucks. Moreover, there is also a shift in lifestyles among Malaysians as they are becoming more health conscious. Due to this Malaysians are reducing their intake of caffeine and began taking an alternative and healthier options (Euromonitor, 2017). This may reduce the coffee intake among Malaysians despite of the strong coffee culture in Malaysia.
Image of page 11
6- Customer Analysis As stated in the Social aspect of the PESTEL analysis, drinking coffee has become a trend among Malaysians. This section of the report will examine the customers of Starbucks.
Image of page 12
Image of page 13

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture