Strengths And Swot Analysis: SWOT Analysis Of Starbucks

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Unit II Starbucks SWOT Analysis
SWOT Analysis
This SWOT analysis will provide a review of the internal and external environmental factors, strengths and weaknesses as well as any opportunities and threats that affect Starbucks.
Strengths:
• Starbucks is a highly recognized brand that ensures its competitive stance remains steady in the market with its label and logo emblazoned on all its products. This practice has led to brand awareness, an excellent reputation, and high customer following.
• The organization is mission oriented and enforces very strong ethical values.
• The following numbers illustrates the company’s profitability (Starbucks.com, 2016):
- Revenue increased to 16.5% in FY15, $19.2B for the full year. 13.7% above previous
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- Bring exotic flavors to non-exotic locations and vice versa.
- Innovative in most aspects of the company but Starbucks needs to continuously create new projects -- creativity may falter in the future
• Increasing number of competitors
- Caribou Coffee Company, Costa Coffee, Dunkin Brand Group inc, McDonalds, Tim Hortons, Green Mountain Tasters, Nestle S.A and other packaged coffee products are some of Starbucks biggest competitors
• Has had to close a number of non-profitable stores (mostly globally)
Opportunities:
• Starbucks’ opportunities to expand into new markets in order to develop its global market revenues and profit shares.
- Expansion into India, Indonesia, China and other marketable countries to generate profit
 Providing more tea options in these countries where population is majority tea drinkers.
• Create new products and services (expanding past coffee) in order to diversify the company’s brand
- Healthy beverages to offer (piggy back on the trend of being fit)
- Packaging products and coffee-related items for retail sale
- Introduce new brewing and roasting machines to the market
 Starbucks was up more than 3% after-hours, after closing at an all-time high of $50.37 (O’Toole,
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Expand to accommodate dinners during evening time, this should allow for Starbucks increase in traffic control during non-peak times.
Threats:
• There are many external environmental threats that can pose a problem to Starbucks
- Climate change. “The company is now preparing for the possibility of a serious threat to global supplies…if conditions continue as they are – is a potentially significant risk to our supply chain, which is the Arabica coffee bean.” (Goldenberg, 2011)
• Global economic instability could drive product cost higher with lower sales and profit margins.
- The cost of manufacturing will likely continue to rise, posing a threat to future growth
- International supplies severing business association, increasing product costs, etc
• Competition can reduce sales revenue and market shares
- Competitive coffee brands
- Similar brands imitating Starbucks

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