SWOT analysis of Pacific Coffee
Strengths A. Pacific Coffee is a very profitable organization, earning in excess of $17.6 million in 2010. B. It is a Regional coffee brand built upon a reputation for fine products and services. It has almost 98 cafe shop in almost 8 cities. C. Pacific Coffee strives to be a contributing member of the communities serve. Pacific Coffee fund raising efforts are dedicated to the disabled or less fortunate children in its community and supporting the environmental causes. it make It has a very positive image. D. Pacific Coffee currently provide a complimentary broadband service through computer terminals in our stores. In addition, all locations are equipped with WIFI coverage.
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As competitive pressures increase, the company could be undercut by lower price rivals such as Mc Coffee. D. Over-dependency on coffee and coffee related products. E. Lack of ownership of coffee farms F. High price products
Opportunities A. The company has the opportunity to expand its global operations. Some new markets for coffee such as India and the Pacific Rim nations are beginning to emerge. B. In June 2010, China Resources Enterprise, Limited and Chevalier have forged a partnership to further expand the Pacific Coffee business in the Chinese Mainland with being a major shareholder. C. The social trend is Environmental Protection, Pacific Coffee urge its customers to bring their own mugs or tumblers for beverage purchase and in return, Pacific Coffee deduct HK$3, SG$0.50 or RMB 2 off their bills as an appreciation gesture for their support of the environment conservation. D. It also engaged in the wholesale coffee beans, more and more companies buy coffee beans from the it E. Continued focus on improving efficiency and effectiveness in the organisation, from procurement, to supply chain to customer service delivery. F. Become more of a socially responsible brand. Better public relations activity, introducing more fair trade products, better distribution of profits to farmers and ethical sourcing practices. G. To merge with, or form strategic alliances with
GMCR’s warns of the potential impact of the price of coffee on the gross profit margin. To combat this, GMCR had made a number of purchase commitments to ensure an adequate supply of coffee (GMCR Annual Report, 2010). The market price for coffee is impacted by numerous factors including weather, economy, and competition. It is vital that GMCR continue to take proactive measures to secure against unforeseen spikes in coffee prices. The price of coffee does not only impact GMCR’s ability produce coffee for the Keurig brewer under its namesake but impacts their partner suppliers as well. GMCR purchases coffee from brokers, farms, estates, and cooperative groups and essentially diversifies its coffee supply, reducing some supply risk (GMCR Annual Report, 2010).
The main objective is to improve the lives of small-scale coffee farmers by increasing the productivity of their farms and quality of beans in a sustainable way. It was launched in 2005 and till date, 4000 farmers worked and have influenced the lives of over 20,000 people. They help farmers learn how to succeed in today’s changing market conditions by empowering them with skills and tools. The Tin Hortons coffee partnership is based on three main pillars-Economic, Social, and Environmental.
Also there were large restaurants trying to find ways to capitalize on the specialty coffee industry i.e.: Macdonalds, Krisspy, Dunkin, Donuts …..
There are different types of competition in the market for coffee. There are usually a multitude of coffee shops of different types and ownerships to supply for the highly concentrated demand. The most
With 11,000 plus coffeehouses worldwide, it is evident that their strategy of being passionate about their customer relation and their devotion to delivering a quality product goes beyond culture and language.
In order to avoid these challenges the company built and maintained firm relationship with Chinese local partners as well as government officials. In addition, Starbucks Soong Ching-Ling Foundation received $5 million donation from Starbucks to support education in country’s poorest regions. Starbucks realized that local
* The organization is dependent on a main competitive advantage, the retail of coffee. This could make them slow to diversify into other sectors should the need arise.
It adds value to the business i.e. it enhances the business operations which would inturn have a positive impact on the business
Starbucks desire as the leader in the specialty coffee industry is to be acknowledged for its responsibility to coffee farmers and their families to improve their well-being. The corporation’s primary stakeholders are broad organizations such as, coffee trade associations, suppliers, and groups with interest in sustainable coffee production. Including non-profit groups focused on human rights, social justice, and environmental issues. Other stakeholders include governmental agencies such as, U. S. AID (Starbucks Corporation, 2010).
B. With so many stores it’s also not surprising to see Starbucks on many college campuses and in
And finally, on February 1st, Starbucks Coffee Company opened its first store in Vietnam at the New World Hotel in downtown Ho Chi Minh City. The company has studied Vietnamese market since 1991 and made VERY, VERY careful steps when entering this market. The only partner licensed to operate Starbucks stores in Vietnam is Coffee Concepts Vietnam, a subsidiary of Hong Kong Maxim’s Group. The signing with Coffee Concepts Vietnam will maximize the growth potential of Starbucks in Vietnam as the partner has experience in managing 130 stores in Hong Kong and China. Starbucks’ strategy is to bring unique coffee experience to customers at its stores. Besides, Starbucks will boost the localization of stores in its business strategy in Vietnam to make Starbucks stores the third destination for local people, following their home and office. “Starbucks provides much more than just the best cup of coffee, we will offer a place where people come together, connect with family and friends and celebrate the local Vietnamese coffee culture and heritage”, said Jinlong Wang, President of Starbucks Asia Pacific. Now let us begin our SWOT analysis. One of my team members, Lan Huong, is going to show you some strengths of Starbucks Coffee Company.
Many multinational corporations in the coffee industry have succeeded tremendously such as Starbucks. Each of these corporations has strategies that helped them continue to expand to nations of different cultures, ethnicities, governmental practices, and locations.
Not only do people come to coffee shops to enjoy drinks and snacks, but for the quiet work space to go along with it. Although Peet 's offers free, fast Wi-Fi for all its customers, it does not have a great work space for working. Coffee shops were one of the first businesses to offer Wi-Fi to customers,
b. Revamping the firm’s overall value chain to eliminate or bypass some cost-producing activities altogether
Starbucks have shown in the past that they are very good at taking advantage of opportunities. In an strategy alliance with Hewlett Packard, customers could create their own music CD within a Starbucks coffee shop. Thus the company could look for these kind of opportunities to seize. In addition, new markets for coffee are emerging such as India and the Pacific Rim nations, also Europe which is getting more and more accustomed with the brand name “Starbucks”. Co-branding with other manufacturers of food and drink, and brand franchising to manufacturers of other goods and services both have potential.