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Starbucks SWOT Analysis

Starbucks Corporation is an international coffee chain based in Seattle,Washington, United States. 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.

Strengths

· Starbucks is the market leader in the coffee Market.

· It has 16,635 stores in different countries including 11068 in United States.

· Customers are satisfied with the quality and taste of Coffee.

· High brand equity.

· Operating in 40 countries worldwide.

· Huge number of employees’ approx 13 thousand.

· Financial conditions of the company are good

· Company is expanding with speedy pace; it has opened 900 in US during the year 2009.

· Starbucks coffee shops locations are at convenient places like library, shopping malls and etc.

· Customer service is excellent.

· High brand awareness.

· Starbucks making their business more environmental friendly.

Weaknesses

· Pricing are higher as compared to the competitors.

· High operating cost

· The business profits are highly dependent on coffee product.

· Closed numbers of stores in different countries during year 2008-2009.

· Starbucks have less control over stores outside the US.

· Protest against the company on different issues.

Opportunity

· Entry into Asian market like Pakistan, India and Bangladesh.

· Product diversification

· Market penetration in International countries

· Co-branding with other food manufactures.

· Whole bean sales in supermarkets.

Threats

· Current recession may impact the sales.

· Entry barrier in the international market

· Numbers of competitors are increasing.

· Variation in coffee prices in developing countries

· Starbucks facing huge resistance in international countries over cultural and political issues.

· People started to become more health conscious

· Competitors are trying to minimize the differentiation by imitating.

· Labor Unions issues in US and international countries

· Security risk at crowded places.

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4 Responses to "Starbucks SWOT Analysis"

  1. Organo Gold says:

    This is a great post! Where can I find more information? Thanks a lot!

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