Swot Analysis Of Starbucks

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Starbucks Coffee SWOT Analysis
Boyd Watson
Columbia Southern University

Starbucks Coffee Company is known on a global level for its retails stores, specialty operations, packaged coffee and beverage brands. They are the largest coffeehouse business in the world that has made huge advancements in all the major markets. Starbucks Coffee chain is strong but it always facing major threats in various markets around the world. For Starbucks to keep up with a competitive advantage, which will be based on its strengths, a SWOT analyzation will be needed. This is very important for Starbucks future, for it will evaluate their business strengths, which will determine their ability to address their weaknesses, opportunities
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New products such as the Evolution brand is being introduced to its cafes and stores as well.
• Starbucks has an Extensive global supply chain which gives them a solid supplier relationship.
• Starbucks has an Extensive global supply chain which gives them a solid supplier relationship. WEAKNESSES
• Starbucks is heavily dependent on the coffee beans price, which is Starbucks main and key input. The price of coffee beans is the main factor in its profitability. With Starbucks being overly price sensitive with the price of coffee beans. This means they will need to diversify its products choices to decrease the risk that comes from being dependent on the coffee bean.
• Starbucks buying practices with poor third world farmers have come under fire from the environmental activists who claim they are using unethical procurement practices. Starbucks has been accused of violating the “Fair Coffee Trade” which was put in place so Starbucks could not take advantage of the third world poor farmers.
• Starbucks is very dependent on its relationships with its suppliers.
• Starbucks is very dependent on the United States, because they get 75% of its revenue from them.
• Starbucks price its brands as a premium to the middle tiers of the market segment, the higher prices effects many lower class working consumers who cannot afford Starbucks brands.
• Starbucks will need to diversify its

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