The paper "Internal Analysis of Starbucks Coffee" is a perfect example of a marketing case study. Starbucks Coffe is a multinational coffee shop that was founded in Seattle in 1971. The company has more than 182,000 employees and operations in over 62 countries. The company offers customers comfort as they enjoy their coffee. The company is well known for its ability to adapt to different cultures and offering their product at affordable prices. Starbucks has 10% of its business operating as licensed brands. The company also engages in other businesses such as Starbucks Duetto Visa Credit Card, music, movies which constitute less than 1% of their initiatives (Starbucks, 2015).
The company is concerned with the customer’ s end product and also ensures that they improve the life of farmers. This critically analyses the internal environment of Starbucks. The report will use (Valuable, Rare, Inimitable, Well Organised) VRIO model. Internal analysis Strengths Starbucks is one of the best performing organizations in the coffee industry. The company has been very active in its strategies which have enabled them to grow and expand globally. Through providing free wireless access to customers, the company has been able to improve its customer exercise.
Through the use of free wireless, customers are able to buy the company music. Starbucks has a strong brand image being among the few coffee companies that have brand supremacy. The company is ranked among the top 100 brands with the highest brand value in the industry. Starbuck's brand resonates with almost every consumer segment. The company has been able to come up with cost-effective marketing strategies (Michelli, 2007). Starbucks marketing does not rely much on advertising but uses word of mouth, brand awareness and appealing designs to market. The success of Starbucks has put them in a good financial position.
The company has been able to post steady and strong revenues over the years. They do not only have strong financial results, but it has been able to go beyond the industry benchmark. The company has been able to demonstrate their ability to gain on operating margin while at the same time making huge and strategic investments in other specialty business channels such as music (Fellner, 2008).
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