Author(s)

Jiayi Wen, Liangyu Xiao and Wentao Zheng

Corresponding Author

Jiayi Wen

ABSTRACT

With the outbreak of coronavirus and epidemic spread in worldwide, majority of shops are closed and more than a half of world customers choose to isolated at home, which has caused an enormous strike to catering industry and overall development of the whole economy. Base on current society situation, people’s preference and propensity to consume under this impact of covid-19, we take Starbucks coffee as an example. This essay using SWOT provides preponderance and defect from both internal and external conditions. Plus, with the analysis of factors that fluctuating the quantity of sale, brand perception, and the preference of consumers which would have influenced the Starbucks market. Results indicate that, epidemic will bring limitation to Starbucks traditional traits and suggest to change the idea of ‘third place’ experience to take-out service. Relying on rapid development of online technology and base on Starbucks’ own mature platform and brand influence, Starbucks has a comparative advantage and great possibility in achieving food delivery market. Meanwhile, Starbucks is facing a main strong competitor—Luckin coffee with the different idea of ‘infinite space’ and relative lower prices than Starbucks. Our research aims to offer some operational suggestion what Starbucks should do to optimize and reform itself for future development in China.

KEYWORDS

SWOT, Starbucks, Business model