1) Strengths (STRENGTH)

Business model: according to the different market conditions around the world to adopt a flexible investment and cooperation model, most of which is based on direct operation.

The full use of "experience": Starbucks believes that their products are not only coffee, but also the coffee shop experience. In addition, Starbucks is more good at coffee outside the "experience": such as atmosphere management, personalized store design, warm lighting, soft music and so on. Just as McDonald's has always advocated selling joy, Starbucks has gradually broken down American culture into something that can be experienced.

Products: Starbucks mainly sells coffee and its own coffee beans, in addition, in fact, Starbucks also sells a flavor and feeling, also known as the intangible atmosphere, Starbucks and the general coffee shop is different from the place, is to give people a kind of humanistic and fashionable sense of modernity, which is different from other coffee shops.

Location: the main business district with a lot of people, in addition to the station and other transportation locations more frequently, because in addition to selling to the people who want to drink, but also to provide a short break in the location.

2) Weaknesses (WEAKNESS)

Localization Issues

Let's put the huge number of "10,000" to one side, the more important thing for Starbucks right now is the localization of China. Any company that enters China from abroad must consider the issue of localization, Starbucks in China on the one hand, taking into account the immaturity of the policy and market, the imperfections of the laws and regulations, and, on the other hand, the integrity of the entire domestic society has not yet been established.

For Starbucks, it must be prudent to look for partners, cautiously adjust the development strategy, and choose its own localization mode, which includes management mode, cooperation mode and product mode, all of which are issues Starbucks needs to be concerned about.

Funding Issues

But anyone who knows a little bit about Starbucks will notice a phenomenon, the location of Starbucks stores always follow such a law - the rent is expensive in the city's busy areas. As we all know, Starbucks for the public is a luxury, in order to ensure that the source of Starbucks, so the location is also the rights and interests of the move. It is understood that Starbucks in Shanghai to open a new store needs 2 million, and after the recovery of direct Starbucks plans to increase the number of stores in China to more than 500, for Starbucks, the need for a large number of funds to open up a new store for it. Starbucks can "single-handedly" open up the market, and at the same time to solve the huge demand for capital, manpower and backup resources, will become the future test of Starbucks a difficult problem.

3) OPPORTUNITY

Unifying China

Starbucks' business model in China was initially based on licensing regional partners. Starbucks headquarters collects the franchisee's royalties and then grants the franchisee the right to use the Starbucks trademark, and the headquarters can only take a small, fixed percentage of the franchisee's operating income as a commission. Shanghai Unity Starbucks Coffee Co., Ltd. exercises its agency rights in the Jiangnan region of Shanghai, Hangzhou and Suzhou; Maxim's Starbucks Catering (South China) Co., Ltd. currently owns the rights to operate Starbucks in China's Macao, Guangdong and Hainan; and the agency rights for the northern region of China, mainly Beijing and Tianjin, were awarded to Beijing Meidai Coffee Co.

In just a few years, China has become a bright spot in Starbucks' global business. Hong Kong Starbucks store opened in the first month of the world's fastest profit record, Shanghai unified Starbucks development can be called a "miracle", in two years on the 32 million yuan profit. This makes Starbucks headquarters red-eyed, if these agents can be unified to recover and can continue to grow on this basis, then Starbucks in China's food and beverage market position is really immeasurable.

Mastering the initiative, harvesting the fruits of the Chinese market

Not long ago, Howard Schultz, global chairman of Starbucks, visited China. Schultz visited China, disclosed to the media: Starbucks will change the past business model in China - call off the franchise, recovery of equity, Starbucks will be transformed into a wholly-owned direct operation in China. And plans to make China the largest overseas market for Starbucks, with the number of stores increasing from the current 100 to more than 500, surpassing Canada and Japan.

Currently, Starbucks has completed the holding of Shanghai unified Starbucks equity and Guangdong Maxim Starbucks. Just occupy half of Starbucks China's control of 100% of the equity of the U.S. big Starbucks is still deadlocked, and rely on its greater influence in China, and Starbucks headquarters to call the shots. However, as far as the facts are concerned, Starbucks headquarters to recover the franchise of Beijing Meida is inevitable, to recover the franchise is only a matter of time and process.

4) THREAT

Potential risk after dramatic expansion: the investment pressure to open new stores is huge. At the same time, because Starbucks does not allow franchising, so the operator nonetheless can not sit on the franchise money like other coffee shops.

There are many real and potential competitors. China's mainland market has Taiwan on the island of coffee, Japan's real pot of coffee, as well as later into the Canadian Baiyi coffee, etc. Starbucks as its biggest competitor, "coffee war" staged has been unavoidable. Comprehensive analysis, Starbucks is facing more than these competitors, can be broadly divided into four categories:

1. Coffee industry competition: chain or franchise stores such as Seattle Coffee, Yi is a coffee, Rhododendron Coffee and successive entry into the market of coffee shops and independent stores coffee shops.

2. Convenience store competition: Convenience store coffee cans, aluminum cans, and convenience packets of brewed coffee are readily available.

3. Fast-food restaurants selling coffee: McDonald's fast-food restaurants, Texas burgers, KFC fast-food restaurants and other convenience-based coffee machine brewed coffee.

4. Fixed coffee machine: stationed in airports, rest stops to the convenience of a cup of coffee machine brewed coffee, or tin cans of coffee, aluminum platinum packaging coffee.