Starbucks Swot

Based on a SWOT analysis, some of the strengths of Starbucks are its corporate social responsibility and financial position. Weaknesses include too many stores and high prices. Opportunities are a growing market in Asia. Threats of Starbucks are increase of competition and increase of raw materials. Recently, a Wall Street analyst highly critiqued Starbucks for its products being too expensive and having too many locations. Because of this it is expected to not have as much growth as it used to in the past couple of

Based on the Five Industry Forces, Starbucks’ industry has a high attractiveness due to the low threats of character rivalry, new entrants, and bargaining power of buyers. Starbucks is able to determine the strengths and weaknesses in their position in the industry. With this knowledge, they are able to implement strategies that minimize their weaknesses. Starbucks handled their high threat of substitutes by expanding their product range which gave customers more variety to choose from. Starbucks’ international program with benefits served as an incentive for their suppliers to continue providing them with high quality coffee beans.

Starbucks has a reputation for new product development and creativity. But new ideas can not come so often and even if they do they may not be on target. Moreover, almost the ¾ of their shops are located in the U.S. which means they are depended too much on one country. They need to spread into another group of countries in order to spread the business risk. Also 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.

During the past three years Starbucks has experienced yearly revenue growth approaching one billion. We have maintained a clear and concise mission, “to establish Starbucks as the most recognized and respected brand in the world” (SEC Annual Report, 2005). In addition, we have developed an aggressive strategy that leverages core competencies with a working business model and growth plan to accomplish our mission. However, in order to continue to maintain our growth indefinitely, we must continually evaluate our strengths, weaknesses, opportunities, and threats (SWOT) to ensure that our business model and strategies are robust and can sustain future growth in a constantly changing competitive environment.

Though many companies have fallen victim to failure due to unresolved weaknesses, Starbucks has adopted the attitude that opportunity is not only now here but everywhere. Through expansion into retail operations, technological advances, global expansion, brand extension and product distribution Starbucks has embraced opportunities with reckless abandon. As an answer to a weak international portfolio, Starbucks has

Factors in the global environment provide both opportunities and strengths for Starbucks. Opportunities such as increased revenues, further expansions, and achieving their goal of becoming the most respected brand worldwide. Starbucks also faced threats. These threats include dealing with growing antiglobalization overseas and their huge risk of less return on each overseas store, this deriving from overseas operations being run by local partners instead of Starbucks

Faced with near-saturation conditions in the US - by 2007 it commanded 62% of the specialist coffee shop market in North America (Table 1 ) - the company has increasingly looked overseas for growth opportunities. As part of this strategy, Starbucks opened its first Australian store in Sydney in 2000, before expanding elsewhere within New South Wales and then nationwide (albeit with 90% of stores concentrated in just three states: NSW,

Extension: Starbucks is planning to open 1,200 new stores in year 2013, most of them in the U.S. and China.

is about. In contrast, Starbucks has had a presence in North America since 1971. In

Starbucks is a major American company that was founded in 1971 by three college friends in Seattle, Washington. Jerry Baldwin, Zev Siegl, and Gordon Bowker at one time were all of different paths until they learned coffee roasting techniques from coffee entrepreneur, Alfred Peet (Starbucks Timeline, 2016). Alfred taught the three friends his particular style of roasting which ignited a spark in the trio and they were inspired to sell high quality coffee beans and roasting equipment. They soon started brainstorming names, and finally settled on Starbucks

In addition, Starbucks proposes to enter Russia. The company with its joint-venture partner, M.H. Alshaya, intends to open its first store in Moscow, Russia in the fourth quarter of fiscal 2007. Russia is one of the fastest growing economies in Europe. Economic growth combined with growing coffee consumption and popularity of western brands make Russia a key opportunity for Starbucks. The company intends to enter India through a joint venture. The coffee market in India is expected to grow by approximately 12% during the 2007-2010 period. New markets diversify the revenue base of the company.

In a world where consumers value convenience, price, service and quality, Starbucks has become a major identifiable brand and competitor worldwide. Starbucks operates under the retail coffee and snack shop industry and relies heavily on consumer confidence, spending, preferences and overall economic climate, making the industry highly volatile. The hiring and use of employees to perform the daily operational tasks and duties to provide service and various industry products become an important element in this industry. Because the skill set of the individuals hired in this industry are relatively low, the cost in wages are minimal. The industry reportedly has generated over $30.2 billion in revenue, $1.8 billion in profit and has seen a growth of 2.7% from 2009-2014. Future projected annual growth in this industry is forecast to grow 3.8% over the next five years (IBISworld, 2014).

While the international market presents a great opportunity for expansion, much opportunity exists nationally for Starbucks. Although Starbucks has built its brand on the strength of its national retail stores, through a diversity of other business opportunities it has enhanced its

Jerry Baldwin, Zev Seigl, Gordon Bowker and Zev Siegl were the ones who opened the first Starbucks in Washington in the year 1971. They sold high-quality coffee beans and equipment. The name “Starbucks” was named after the chief mate of a whaling boat, Pequod, Starbuck. The company started out by only selling roasted coffee and not brewed coffee. The coffee was bought directly from plantations.

Starbucks is an international brand in the world, there are more than 21,000 stores in over 65 countries including the franchised outlets. Starbucks is the largest coffeehouse chain worldwide. They are holding a top selling coffee market. There have been selling coffees, tea, any type of fresh food and other soft drink. Which is not just selling in Starbucks, they are also selling the product in other place such as franchised outlets even selling on the train. According to Tom and Asha (2015), Starbucks reported the record for net revenue was $16.4 billion in 2014. Which was increasing 11% from last year. It can see Starbucks market still getting developing.