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Starbucks SWOT Analysis

Starbucks is an international coffee chain based in Seattle with over 16,000 stores globally, making it the largest coffeehouse company in the world. Starbucks has many strengths including being the market leader in coffee, having high brand awareness and equity, operating in over 40 countries, and having excellent customer service. However, Starbucks also faces weaknesses such as higher prices compared to competitors and high operating costs. Opportunities for growth include expanding further into Asian markets and increasing product diversification. Threats include increased competition, economic recessions impacting sales, and resistance in some countries over cultural and political issues.

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SAna KhAn
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165 views

Starbucks SWOT Analysis

Starbucks is an international coffee chain based in Seattle with over 16,000 stores globally, making it the largest coffeehouse company in the world. Starbucks has many strengths including being the market leader in coffee, having high brand awareness and equity, operating in over 40 countries, and having excellent customer service. However, Starbucks also faces weaknesses such as higher prices compared to competitors and high operating costs. Opportunities for growth include expanding further into Asian markets and increasing product diversification. Threats include increased competition, economic recessions impacting sales, and resistance in some countries over cultural and political issues.

Uploaded by

SAna KhAn
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Starbucks SWOT Analysis

Starbucks Corporation is an international coffee chain based in Seattle,Washington, United


States. Starbucks is the leading coffeehouse company in the world, with 16,635 stores in 49
countries, including 11,068 (6,764 Company Owned, 4,304 Franchised) in the United States,
followed by nearly 1,000 in Canada and more than 800 in Japan.

Strengths

· Starbucks is the market leader in the coffee Market.

· It has 16,635 stores in different countries including 11068 in United States.

· Customers are satisfied with the quality and taste of Coffee.

· High brand equity.

· Operating in 40 countries worldwide.

· Huge number of employees’ approx 13 thousand.

· Financial conditions of the company are good

· Company is expanding with speedy pace; it has opened 900 in US during the year 2009.

· Starbucks coffee shops locations are at convenient places like library, shopping malls and etc.

· Customer service is excellent.

· High brand awareness.

· Starbucks making their business more environmental friendly.

Weaknesses

· Pricing are higher as compared to the competitors.

· High operating cost

· The business profits are highly dependent on coffee product.

· Closed numbers of stores in different countries during year 2008-2009.

· Starbucks have less control over stores outside the US.


· Protest against the company on different issues.

Opportunity

· Entry into Asian market like Pakistan, India and Bangladesh.

· Product diversification

· Market penetration in International countries

· Co-branding with other food manufactures.

· Whole bean sales in supermarkets

Threats

· Current recession may impact the sales.

· Entry barrier in the international market

· Numbers of competitors are increasing.

· Variation in coffee prices in developing countries

· Starbucks facing huge resistance in international countries over cultural and political issues.

· People started to become more health conscious

· Competitors are trying to minimize the differentiation by imitating.

· Labor Unions issues in US and international countries

· Security risk at crowded places.

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