The last element in the swot analysis of starbucks is the threats facing the company. Starbucks started with just one coffee shop way back in 1941 in seattle us. Well established brand name that is recognised globally around the world. This strategy has paid off which helped its legendary. It also outlines the opportunities that enabled it to arrive at a current position. As an analysis, this study is qualitative in society. However, it does that without compromising on ethics. As starbucks takes advantage of economies of scale and scope, it follows a different cost structure than other corporations in the market. Many people of the corporate world consider swot analysis to be one of the most effective tools in the analysis of marketing data and information.
Starbucks profitability has been rising for the past few years and is now 14. The company has managed an optimum balance of licensed and owned stores globally. Swot analysis of starbucks the premium coffeehouse chain. Starbucks also known as starbucks coffee company, is a premium coffeehouse chain providing hot and cold coffee beverages, tea and snacks. Pdf the strategy of starbucks and its effectiveness on. Overall swot for starbucks image about starbucks strategy. Swot analysis of starbucks starbucks swot analysis. Swot analysis of starbucks positive negative internal strengths. Competition is fierce in coffee business like most other businesses.
Starbucks corporation is an international coffee chain based in seattle,washington, united states. The main threat facing starbucks is its competitors such as mcdonalds mccafe coffee which offers quality products at much lower prices than the coffee. Starbucks recently launched first major advertising rapid growth of starbucks. The report illustrates the application of the major analytical strategic frameworks in business studies such as swot, pestel, porters five forces, value chain analysis and mckinsey 7s model. Introduction the following content is a case study on starbucks. Swot analysis of starbucks coffee mba knowledge base. This is mainly because the swot analysis is a simple, straightforward framework that provides and serves as a catalyst for the development of viable future plans and to rectify the current plans. The company also maintains its focus on high ethical standards inside the organisation. Mba tutorials accounting, economics,finance, management, marketing,strategic management,human resource. Starbucks swot 2020 swot analysis of starbucks business. Pdf the strategy of starbucks and its effectiveness on its. Starbucks swot analysis 2 1 strengths global image the company can use its established global image to acquire new markets by transferring its key competencies and capabilities to come up with profit drivers.
In order to gauge this performance we look at both the companys characteristics and those of the surrounding market and. The worlds largest coffeehouse business, starbucks nasdaq. Starbucks has many strong points which serve as the major strengths for the company. In this starbucks swot analysis we evaluate the strengths, weaknesses, opportunities, and threats facing the worldwide coffee leader. Swot is a tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Starbucks swot analysis 6 key strengths in 2020 sm insight. The swot diagram below shows the summary of a swot analysis for starbucks the coffee chain strengths. Starbucks has both means and experience to explore these opportunities. Starbucks is a premium brand commanding high premium prices. It sources its cocoa ethically from selected suppliers. Starbucks swot analysis by david schwartz what does swot analysis mean. Introduction starbucks is the company that will be discussed in this assignment.
So basically it has a very sound financial records. It takes into account the various factors that led to its growth, the global trends and the future potential that can help the brand scale greater heights. With over 28,000 stores spread across the united states, europe, middle east, asia pacific, and africa, starbucks ticker symbol. They are also very prone to feeling the effects of rises in coffee, tea, and dairy product prices. The result of the analysis may provide a basis on which a more detailed analysis can be conducted. Therefore, the aim of this paper is to do an indepth swot analysis of starbucks corporation in order to identify the key internal and external factors that are important to its successful operation. The company also undertook some restructuring during the recent years to bring focus back upon the core and most profitable businesses. She gathers her team, and draws up the swot analysis shown in figure 2 click on the image to see a larger version.
Starbucks retails a variety of drip brewed coffee, espressobased hot drinks, other hot and cold beverages, complementary food items, coffeerelated accessories and equipment, teas, ice cream, and items such as mugs, coffee beans, and music and other nonfood products through. Presented below is the swot analysis of starbucks which will analyze the companys strengths, weaknesses, opportunities, and. Swot analysis is a strategic planning tool that can be used by starbucks managers to do a situational analysis of the company. Starbucks company s mission, vision, and primary stakeholders essay 1626 words 7 pages. Starbucks has maintained a strong brand image as an ethical business brand. Pdf swot analysis of starbucks positive negative internal. This strong brand image serves as the most prominent strength for starbucks.
Extensive international supply chain starbucks is known to have an extensive. Starbucks is able to remain competitive within the market due to its sheer size and business model. This starbucks swot analysis reveals how the largest coffee chain in the world uses its competitive advantages to continue growing so successfully all over the world. It can achieve this by venturing into product diversification to sustain the brand. Looking for the best starbucks corporation swot analysis in 2020. Those are all of the major points in this swot analysis of starbucks. Starbucks swot analysis matrix step by step weighted swot.
It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. Each one of these items can make a company be who they want to be and starbucks has used these items to their advantage. These prime strengths of starbucks are as following. Starbucks faces tough competitors in many of its global markets. Keywords swot, starbucks, china, factor estimate matrix, analysis. One that not only celebrated coffee and the rich tradition, but that also brought a feeling of connection. Loyal customers the loyalty programs can be used by the company to ensure that it has a continuous. Thats why the company can charge premium prices and still become. High prices for many middle tiers and working consumers, starbucks offerings are more. Swot analysis is used for assessment of the strategic position of the company in the current environment.
Starbucks is the largest coffee brand of the world. Starbucks strengths internal strategic factors strong brand image starbucks corporation is the most popular and strongest brand in the food and beverage industry. The company faces threats from the rising prices of coffee beans and is subject to supply chain risks related to fluctuations in the prices of this key input. This is a swot analysis of starbucks highlighting the strengths. The strengths and weaknesses are the internal factors while opportunities and threats are considered as external factors. Starbucks swot analysis executive analysis starbucks corporation, founded in 1971, is a retailer of specialty coffee. Since then spreading love with coffee and eventually striving hard to make it next stop other than home and office. Its main focus remains on creating highest customer satisfaction. Compared to 2017, its revenue grew by around 10% in 2018. Swot analysis is, therefore, often used as a method by which a business or its marketing department can plan its marketing strategy. Starbucks swot analysis swot analysis of starbucks. The swot analysis of starbucks reveals the many strengths housed by the worlds biggest coffeehouse chain. Starbucks corporation report contains a full analysis of starbucks segmentation, targeting and positioning and starbucks marketing strategy in general.
Starbucks has high price points that maximize profit margins but reduce the affordability of its products. Starbucks swot analysis includes brand value is second highest only next to mcdonalds which is at 44 billion usd as on 2017 read detailed report. Swot analysis example for starbucks the marketing study. Starbucks is the leading coffeehouse company in the world, with 16,635 stores in 49 countries, including 11,068 6,764 company owned, 4,304 franchised in the united states, followed by nearly 1,000 in canada and more than 800 in japan. Thus, a swot analysis was used to identify the required management. The key weakness of starbucks is their weakened innovation and creativity.
We can see from the swot analysis they have taken into account strengths, weaknesses, opportunities, and threats. To begin with strengths, starbucks reputation with high brand equity can not be denied. These premium prices could also pose some weakness for it to succeed in developing countries. Starbucks coffee starbucks corporation swot analysis strengths.
Starbucks had made one strong name of itself within the entire coffee industry throughout the world. It increased its number of stores from 1,886 to 31,256 between 1998 and 2019. This makes it the largest coffee chain in the world. The company is enjoying a huge presence in 30,000 location and 78 markets. This article performs a swot analysis of the famous coffeehouse chain, starbucks.
Starbucks corporation, an american company founded in 1971 in seattle, wa, is a premier roaster, marketer and retailer of specialty coffee around world. This internal strategic factor is a weakness because it limits the companys market share, especially in areas with relatively lower disposable incomes. Swot analysis of starbucks 6 key strengths in 2020 ovidijus jurevicius january 27, 2020 this starbucks swot analysis reveals how the largest coffee chain in the world uses its competitive advantages to continue growing so successfully all over the world. Swot analysis looking into starbucks specifically, we need to analyze how it performs as a company and whether or not it will continue to perform. Coffee became a classy drink with the introduction of the coffee pub culture which was pioneered by starbucks a coffee cafe and retailer based out of usa. One of the main strength of starbucks is their robust financial performance which in turns helps it to become the market leader in the category of coffee. From the beginning, starbucks set out to be a different kind of company.
Apart from its premium products, it is well known as a customer centric brand. Its revenue has grown steadily over the last five years. Most people attribute starbucks success to its delectable coffee beverages and other menu items. Addition of more coffee products and expanding the menu gives them an opportunity to grow. Founded in 1971 in seattle, washington, starbucks has more than 23,445 locations and above 191,000 employees. To inspire and nurture the human spirit one person, one cup and one neighborhood at a time. Swot analysis strengths 1 starbucks is one of the several highly profitable organizations.
The swot framework consists of four elements called strengths, weaknesses, opportunities and threats. But the fact is, starbucks has an incredibly unique business model that sets it apart from competitors. The paper also assesses the possible impacts of these operating conditions. Starbucks swot analysis for 2017 november 1, 2016 the article was written by blair goldenberg, a financial analyst at i know first, and enrolled in a masters of finance at colorado state university. The paper presents a swot analysis of the starbucks corporation by focusing on the internal environment of the corporation and the external environment. Its customer base could grow faster, if the prices of its products were lower. Alice is the ceo of a small startup consultancy and wants a clear picture of its current situation, to decide on a future strategy for growth. Starbucks swot analysis business essays essay sauce. In the analysis, the paper presents an assessment of the operational conditions within and without the organizations. Well, the starbucks swot analysis highlights the fundamental strength and weakness of this coffee major. In 2017 starbucks were number 2 for the 10 most valuable fast food brands world. Starbucks corporation owns an extensive brand portfolio.
Our mission to inspire and nurture the human spirit one person, one cup, and one neighborhood at a. Swot analysis of starbucks, the worlds leading coffeehouse chain. Specifically, swot is a basic, straightforward model that assesses what an organization can and cannot do as well as its potential opportunities and threats. The key themes in this analysis are related to the excessive dependence on a few products and hence, the need to diversify its product range. The impact that the companys mission has had will also be discussed, as well as the success of the primary stakeholders. Swot analysis strengths, weaknesses, opportunities and. Starbucks currently has around 24,000 outlets in around 70 countries across the globe. Apart from these things, the company is also known as an ethical business.
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