COMPANY ANALYSIS: SWOT

  Product / Market Growth Matrix   Market Penetration  In this situation, the company try to boost their sales by offering extra discounts, sales offers,                   promotion activities and designing their stores. Basically, they offer the sames products to the                   same type of market / consumer.  Example, Starbucks redesign its store layout widely in 2008 to boost their sales. Another example would be Wind Turbine Manufacturing firm in Canada successfully reduce their demand shortfall by implementing market penetration strategy.  More info     2.    Product Development strategy  Company try to increase their prouct offering range more wider in their existing market. Therefore, company comes out with new product for their existing market. By this the company not only able to wider their product range but also can increase their profit margin.  Example, Ikea have total of 9,500 types of products and launched 2,500 new products annually. In other hand, Samsung introd

THE PROBLEM FACED BY STARBUCKS IN 2008  Store shutdown nationwide In 2008, Starbucks forced to shutdown 600 stores meanwhile additional of 300 stores was close              in the following year. Starbucks lay off total of 6,700 employees      2.     Global Financial Crisis 2008                  This caused US economy to face inflation which lead to lower purchasing power among US                     consumer. Therefore, people seems to ignore Starbucks's coffee due to its high pricing.      3.     Profit loss      Company profit surge by 28% in 2008 compared than its previous year profit earning     4.     Expansion of branch  Starbucks rapidly expand their branches nationwide distract the company's main aim which is              treating Starbucks as inviting place with new products. As a result, lower sales lead the company              to experince high operational cost     5.     Less consumer-More bureaucracy              Starbucks begin to opperate their company based on