IndexMarket and Competitive AnalysisAccessibilityMacroenvironmentPEST Analysis: For this, it is essential to conduct a SWOT analysis of Starbucks: In this report, I will identify the current marketing strategies strategies of Starbucks in the UK market and how to improve this performance by introducing new strategic approaches. I will start by analyzing the coffee industry with its consumers and competitors in the UK. Next I will evaluate the internal strategic capacity of the coffee company. This will lead me to suggest opportunities that Starbucks can potentially take advantage of to improve its current marketing strategy. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Market and competition analysis "The UK is the most developed market [in Europe] and remains the model for the branded coffee shop industry" according to Allegra Strategies (Sousa, 2017). In fact, the UK has seen the highest annual growth of coffee chains in Europe since 2015. 643 stores saw the lights in 2017 to reach a total of 7421 outlets in the kingdom. The industry's average annual growth from 2013 to 2018 is 5.7% with a total turnover of £6.2 billion in 2017 (Clients1.ibisworld.co.uk, 2017). The following graph represents the four phases of the industry life cycle: introduction, growth, maturity and decline. The introduction phase occurs when sales continue to grow slowly. The growth phase, which the UK coffee industry is currently in, is one in which sales are growing rapidly. After the maturity phase the number of sales begins to decline, but currently there is no sign of stagnation. We determined the different categories of Starbucks customers based on their behavior and in what situation they often go to coffee. The most common answers are “moving” and “socialising” with 37% and 32% respectively. While fewer people buy coffee when it is “part of the work routine”, for “meetings”, to “pass the time” or to have “me time” (Bacon, 2013). The UK coffee market is very competitive and the barriers to entry for new entrants are very low. It has already been 20 years since Starbucks opened its first store in the UK (News.bbc.co.uk, 1998) Starbucks' main competitors in the UK market are Costa Coffee, Pret A Manger, Caffè Nero, AMT Coffee and Harris + Hoole with 17.3%, 10.3%, 4.8%, 0.3% and 0.3% respectively. Starbucks is the third largest coffee chain in the UK with 5.8% market share. However, the other part of the market shares, which is the largest (61.2%), belongs to independent coffee shops and other smaller coffee chains (Clients1.ibisworld.co.uk, 2017). Major coffee chains are perceived as following based on the two dimensions of price and quality experience. It is clear that Starbucks is seen as the best in terms of quality at a higher price. On the other hand, Pret A Manger is perceived as a coffee shop that has the same high price for a lower quality experience. Furthermore, the UK market leader is in the middle with a slightly lower price and a slightly higher quality of experience than Pret A Manger and lower than Starbucks. A strong brand gives more value to the company and the perception of the brand in the minds of customers. Supply contracts in place for key inputs: Companies must have good relationships and contracts with distributors who must meet deadlines otherwise the company's entire business can be jeopardized. Attractive presentation: Attractive products and stores are more likelyare seen, remembered and desired by customers. It helps customers' subconscious to put a positive label on the product or service before they even try it. As a result, logos, lights, colors, sounds and even smells are important to attract potential customers. Accessibility Coffee shops should be close to an active area where there are usually people around in order to be easily accessible easily. Additionally, stores should be visible to the public to see. Adequate pricing: The price should not be too high for the product or service offered by the company. The brand must find a balance. PEST Macroenvironment Analysis: Policy Starbucks, like other international companies, uses the services of low-skilled European migrants because such companies save costs and increase profits by paying them the minimum wage. Pret A Manger also stated that only one in fifty applicants is British (Carroll, 2017). Economical The price of coffee is very volatile, which means that its price always fluctuates depending on international economies (Sera, 2016). Social Every location is different and will have a different impact on each store's revenue. Technological We live in a rapidly growing world where the digital world is part of our daily lives. Companies must invest in the future of interactive tools such as social media or virtual reality. Primary Activities SWOT Analysis To identify new strategies to implement, we must identify strengths and exploit opportunities to overcome weaknesses and avoid threats. For this, it is essential to conduct a SWOT analysis of Starbucks: Strengths: Brand and visibility: Starbucks is the largest coffee shop chain with a presence in more than 75 countries with more than 24,000 stores (Starbucks, 2018). It is one of the most famous and valuable brands in the world in 2017 (Forbes, 2018). Value for money: It is renowned for the excellent price quality of the products offered in the store. Excellent financial performance: in 2017 Starbucks generated revenues of approximately 9 billion British pounds (Statista, 2018). Wide range of outlets: Starbucks has 807 stores across the UK (Hooker, 2017). Large product portfolio: The café offers a large variety of products in its menus such as hot and cold drinks, but also food and snacks. Weaknesses: Position in the UK market: While Starbucks is the world leader, the British companies Costa Coffee and Pret A Manager are first and second respectively in the UK market ahead of Starbucks. Overreliance on the North American market: Most of Starbucks' revenue comes from the United States and Canada. There are more Starbucks outlets in the United States than in the entire world combined (Statista, 2018). Lack of unique products: Starbucks products are not exclusive and can be replicated. Scott Maw, Starbucks CFO, said that “coffee shops out there are doing a lot of what Starbucks has been so good at for so long” (Taylor, 2017). Opportunities: Global Expansion: Since there are more than 50% of the stores are located in the United States, the company can still expand into many markets, especially in emerging countries. Higher demand for coffee: The demand for coffee is sharply increasing in the kingdom. The sector, in fact, records an annual growth of 5.7% and 70 million cups of coffee drunk per day in the United Kingdom. People in the UK are drinking more coffee than ever before. Threats: Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay Intense Competition: There is huge competition with the different coffee chains, independent coffee shops and food restaurant chains entering the market with similar drinks like McDonald's. There.