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SWOT Analysis Starbucks: Strengths

This SWOT analysis examines Starbucks. Strengths include its profitability, global coffee brand reputation, respected employer status, and commitment to environmental leadership. Weaknesses are potential issues innovating over time, heavy reliance on the US market, and dependence on coffee sales. Opportunities exist in new products, expanding globally into emerging markets, and co-branding. Threats include potential replacement by other beverages, rising costs, and increased competition. Starbucks' mission is to be the premier coffee purveyor while maintaining principles during growth.

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Punit Sukhwani
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361 views2 pages

SWOT Analysis Starbucks: Strengths

This SWOT analysis examines Starbucks. Strengths include its profitability, global coffee brand reputation, respected employer status, and commitment to environmental leadership. Weaknesses are potential issues innovating over time, heavy reliance on the US market, and dependence on coffee sales. Opportunities exist in new products, expanding globally into emerging markets, and co-branding. Threats include potential replacement by other beverages, rising costs, and increased competition. Starbucks' mission is to be the premier coffee purveyor while maintaining principles during growth.

Uploaded by

Punit Sukhwani
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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SWOT Analysis Starbucks

This SWOT analysis is about Starbucks.

Strengths.
 Starbucks Corporation is a very profitable organization, earning in excess of $600
million in 2004.The company generated revenue of more than $5000 million in the
same year.
 It is a global coffee brand built upon a reputation for fine products and services. It has
almost 9000 cafes in almost 40 countries.
 Starbucks was one of the Fortune Top 100 Companies to Work For in 2005. The
company is a respected employer that values its workforce.
 The organization has strong ethical values and an ethical mission statement as
follows, 'Starbucks is committed to a role of environmental leadership in all facets of
our business.'

Weaknesses.
 Starbucks has a reputation for new product development and creativity. However,
they remain vulnerable to the possibility that their innovation may falter over time.
 The organization has a strong presence in the United States of America with more
than three quarters of their cafes located in the home market. It is often argued that
they need to look for a portfolio of countries, in order to spread business risk.
 The organization is dependant on a main competitive advantage, the retail of coffee.
This could make them slow to diversify into other sectors should the need arise.

Opportunities.
 Starbucks are very good at taking advantage of opportunties. In 2004 the company
created a CD-burning service in their Santa Monica (California USA) cafe with
Hewlett Packard, where customers create their own music CD.
 New products and services that can be retailed in their cafes, such as Fair Trade
products.
 The company has the opportunity to expand its global operations. New markets for
coffee such as India and the Pacific Rim nations are beginning to emerge.
 Co-branding with other manufacturers of food and drink, and brand franchising to
manufacturers of other goods and services both have potential.

Threats.
 Who knows if the market for coffee will grow and stay in favour with customers, or
whether another type of beverage or leisure activity will replace coffee in the future?
 Starbucks are exposed to rises in the cost of coffee and dairy products.
 Since its conception in Pike Place Market, Seattle in 1971, Starbucks' success has lead
to the market entry of many competitors and copy cat brands that pose potential
threats.

'Starbucks' mission statement is 'Establish Starbucks as the premier purveyor of the finest
coffee in the world while maintaining our uncompromising principles while we grow.' The
following six guiding principles will help us measure the appropriateness of our decisions'

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