Strengths And Swot Analysis: SWOT Analysis For Starbucks

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3.0 Starbucks SWOT Analysis SWOT analysis can divide into 2 parts such as external and internal analysis. External analysis is focusing on the Opportunities and Threats. Internal analysis is including the Strengths and Weaknesses within organization (Anonymous, 2010). STRENGTH Strong brand recognition Starbucks has a strong brand reputation associated with quality coffee and excellent customer service. Its brand is the most valuable brand in coffeehouse segment and is valued at $4 billion. Starbucks is the big coffee company which has high number of stores approximate 16,709 stores worldwide and 11,181 stores in U.S. (“Study Find,”2010) Strong financial history Starbucks is a profitable organization. Starbucks profitability has been rising for the past few years and is now 14%. The company also outmatches its nearest competitors with 24.54% return on investment and 29.16% return on equity. Starbucks has…show more content…
Starbucks faces threat from the rising prices of coffee bean (The Motley Fool, 2015). It is subject to supply chain risks related to fluctuations in the prices of this key input. Prices of dairy product increase will impact Starbucks adversely leading to another threat to its profitability. Economic sensitivity Starbucks carved itself a share in the supreme-quality segment in an industry with a soft market (more sellers than buyers) via higher-priced premium product offerings. Starbucks will suffer when economic activity turns down and household income falls, causing customers to trade down to lower-priced alternatives. Starbucks experienced a net loss after the recession of 2009. Its stock performance plummeted hand-in-hand with consumer confidence in the days just before the recession. While economy recession, consumers who are not loyal coffee drinkers are looking for substitute product. 4.0 Target Market

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