Starbucks SWOT Analysis

Starbucks SWOT Analysis

What is SWOT Analysis? The answer is more simple than you think, SWOT is a system that can help identify the strong and weak sides, opportunities and threats of a particular organization. SWOT is a basic, straightforward model that helps to understand what an organization can and cannot do and also what potential does it have and what may threaten. 

The methodology of SWOT analysis is based on taking the information from an environment and separate it into internal (strengths and weaknesses) and external problems (opportunities and threats). Once it is done, SWOT analysis helps understand what may assist the company in accomplishing its goals, and what obstacles should be minimized to achieve good results. SWOT analysis gives full understanding of a brand. Please read the example of SWOT for Starbucks.

Strong sides

  • Starbucks is a leading coffee brand in the world.
  • Strong established logo, developed brand, trademarks, website and patents. 
  • Global organization presented in 48 countries in the entire world.
  • Strongest franchises in the world with more than 6000 licenses shops across the world. Superior products and services. One of the best companies to work for
  • High quality of control
  • Sophisticated atmosphere and design.
  • Fast serving
  • Customer loyalty
  • Social addition to the product
  • Good relations with suppliers
  • Good for the environment. Many recycling programs involved in business
  • High street locations, office buildings and malls positions
  • Wi-Fi in all stores
  • Various flavors of the product
  • Seasonal discounts
  • Has almost no competitors on the market
  • Constant market growth
  • Welcomes feedbacks and comments about their services
  • Starbucks workers Union that helps employees to share their ideas about the company

Weaknesses

  • High pricing 
  • Too focused on USA domestic market.No guarantee that beverages, milk, chocolate, ice cream and baked goods are free of genetically-modified ingredients.High standards of services for employees, a lot of workers complain about stress.

Opportunities for the company

  • People position Starbucks as the best place for meetings.
  • Open stores in the countries with constant economic growth.
  • Orientation or organic products
  • Open franchise in places where it is possible to buy coffee beans, for example Indonesia.

Threats

  • Financial crisis which makes people spend less much money.
  • Economy stagnation and low income in certain countries
  • People are turning against corporations more
  • Not everyone is happy about Starbucks domination on the market
  • Farm workers exploitation in the third world countries.

As you can see, SWOT paper is not so difficult as it may seem at first sight, but you do need to conduct a proper research and present your arguments in a clear and logical way.

SWOT can be a part of a more comprehensive business plan. When you perform a SWOT analysis for your business plan, try to stay be realistic about the strengths and weaknesses of your company.


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