In turn, Starbucks have also conducted loyalty-based activities such as launching Starbucks express, rewards programs that increase their customer's loyalty.
Starbucks is currently providing a wide range of different products. The case study also shown the product portfolio now present both coffee, drinks, and non-coffee items that caters to all age groups.
They had been exploiting technology to support for their business. In detail, they launch Starbucks express that customers can easily make pre - order or prepay via mobile phone. Recently, they have made a considerable idea when they apply Starbucks App in both Apple and Android's software. It is not only convenient but also shorter transaction times.
Weaknesses.
Although Starbucks a number of people consider Starbucks coffee as a luxury good and accept to pay whatever price is set for it, there is an increasing opinion that Starbucks's products are more expensive and they easily switch to competitor's products with lower prices. Moreover, with their continuously spreading strategy, expensive products seem to be an obstacle to succeed in developing countries. .
Secondly, it expands their stores as much as they can. As a consequences, seen in the United States, overcrowding in the market, high saturation happened and led to drop in the sales, increased operation cost.
Thirdly, with the key market share that mainly focus on United State, their total revenue is mainly coming from this market. For example, in the case study, it indicated that Starbucks had less amount on their oversea stores. However, with the wide fluctuations in unstable economy and politic, it is more likely to take risks when some unexpected situations happen in its home market. Based on the case study, employee dissatisfaction seem to be the problem. They are more concerned about odd hours, over workload and low pay. It even make a bad influence on their customer service.
