Starbucks SWOT Analysis

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Starbucks SWOT analysis allows the company to see their current position in the coffee industry. The company’s strengths are that it is a market leader In the coffee industry, it has 16,859 stores by the end of the year 2010 and continues to grow (Starbucks Corporation, 2010) a second strength is the expansion rate they have of opening stores internationally and domestically the only fault with the expansion is that they are opening stores that are right next to others and losing money in each store due to over crowdedness. Starbucks is also financially sound this can be proven because during the financial crisis in 2008 and 09 Starbucks profits barely were effected (Starbucks Corporation, 2010). However their stock price did fall. One of Starbucks leading strength is its brand recognition which is known for high quality products and friendly environment (Jurevicius,2013) Starbucks weaknesses are the prices that they are charging consumers which a major factor in that is that beans are a commodity and the factors involving that fact is volatile. Competitors are known for using this against Starbucks such as McDonalds. Starbucks other weakness are that 75% of their profits are based off its coffee products and other specialty drinks (Starbucks Corporation, 2010) which means that when coffee bean prices raise Starbucks take a hit. Starbucks competitors avoid these risks by focusing on food income first and then coffee so are not vulnerable to coffee beans changing, or

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