PEST & SWOT Analysis

PEST & SWOT Analysis

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
SWOT analysis.......................................................................................................................3
PEST analysis.........................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Starbucks is the world's largest coffee supplying chain company, which start its operations from
1971 from Seatle, United States. In beginning they start their supplies in whole bean coffee, tea, rosters
and retailer. And in present it has more than 24000 retail stores in more than 70 countries. But in
Australia, there are no such stores because being an American company, they have to face various
challenges (Kehinde and et.al., 2016). On of the issue that Starbucks face is they didn't fit Australia's
taste. After setup their retail store in Australia they are facing losses as till 2005, Starbucks accumulated
the loss of approx $105 million. But in the closure time of 2008, Starbucks open up the new locations in
the country. For this company, uses the SWOT and PESTLE analysis which help the company to get the
factor's information which are related to the competitive environment for their potential impact on the
basis marketing mix. With the help of these strategies company can operate and achieve the objectives
in order to meet of the organisational, strategic and operational marketing.
MAIN BODY
SWOT analysis
Swot is the model is the management tool, that assesses the strength, weakness, opportunities
and threat of the company. Which are related to the internal and external factors which affect the
Starbucks coffee business. Where the strength and weakness of the business show the internal factors
of the company . The opportunities and threat reflect the external factors which affect competitive
environment and many other external factors.
Strengths: The main strengths of the company are the strong brand image of the company in
the markets. The company are used to make the loyal customers with the help of there strong brand
image in the market. They make more and more loyal customers for the coffee business in the different
market segments. Another strength of the company is its widespread global networks of the supply
chain. As Starbucks use the best quality products to satisfy the customers need for example they use,
Arabic coffee beans (Mothersbaugh, Hawkin and Kleiser, 2019). Furthermore they have diversify their
business such as they developed their subsidiaries like ethos waters, settler's best coffee and many
more. As their grand diversification in the business reduce the market risk and industry risk. They
provide various benefits to their different partners in different manners, also Star buck's innovation
technique and developing tools are so unique that it help them to create the goodwill.
Weakness: After having strengths in the business, they are facing various challenges and
weakness which create the burden for the company to expand there market positions. One of the major