Topic
Starbucks in Respect to McDonald’s: SWOT Analysis
Instructions
Write a SWOT analysis on Starbucks in Respect to McDonald’s
Answer Preview
| Starbucks has a primary target of adult men and women who are within 25-49 years age-range, making 49% of the customers (O’Farrell, 2017). Young adults within the 18-24 years age-range make 40%, while kids and teens within 13-17 years age-range make 2% of the company sales. Moreover, specialty drinks of coffee line accounts for 75% of the company’s sales. Targeting both young and adult customers, McDonald’s makes the greatest customer base on U.S. As depicted in the year 2016, McDonald’s makes up to 32% of all visits made to quick-service restaurant in U.S. (Ground Truth Inc., 2016). As its closest rival, Starbucks enjoys visits of about 11% annually. |
| Over 70% of Starbucks products sold in the U.S. market is coffee-related (Statista, 2016). Considering their exceptional specialization on coffee, the company is capable of selling higher prices and still makes consumers buy them. McDonalds specializes on fast food in general. However, the company’s capability to produce on-demand breakfast has began increasing morning customers who want fresh, hot breakfast as they head to work (Lutz, 2015). |
| McDonald’s has developed a flexible organizational culture, which respects and integrates everyone, from employees to the customers being served. McDonald’s organizational culture is built on four core principles, including people-centricity, promotion of individual, commitment to organizational learning, and diversity and inclusion (Thompson, 2017). Organizational culture practiced in Starbucks is considered to have been part of the reasons for its fast development. Under the five-characteristic organizational culture, including relationship-driven approach, openness, collaboration and communication, servant leadership, and inclusion and diversity, Starbucks culture has been the best in fast-food industry in U.S. (Ferguson, 2017) |
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