PESTLE and SWOT Analysis of Starbucks

PESTLE and SWOT Analysis of Starbucks
SWOT Analysis of Starbucks:
Strengths
• The company has established a brand image in the market that helps the company to make
profits along with that company has a loyal customer base.
• The company has selected quality suppliers that helps company to provide quality goods and
services to its customer.
• Company is also diversifying its business that reduces the risk in the industry.
Weaknesses
• Company has high prices that reduces the affordability of the customers.
• The products served by Starbucks are easily imitable. Also the ambience can be copied by
competitors, so competition is also a weakness for the company.
Opportunities
• The company is expanding its operations in developing markets that helps the company to
increase its revenue.
• Along with that company is doing proper research and planning to diversify its operations that
would help to maintain long term stability.
Threats
• The company is facing lot of competition from a wide variety of firms in international market.
• As the products of company are imitable that is considered as a threat of the company.
As per the SWOT Analysis Starbucks has loyal customer base and the company is able to make
good profits. The company is also diversifying its business operation that helps to reduce the risk. Also
the company is subject to competitors and has risk of imitation and is a threat for the company.
Detail explanation of PESTLE analysis is given below:
 Political Factors: It is considered by Starbucks so that they can analyse the impact of
government. It is analysed by organisation that there is a threat of bureaucratic red tape. So
that's why it is very important for organisation that they focus on all things that surrounded
by many factors that occur from government influence.
 Social Factors: In today's scenario, growing of coffee culture in countries gives a great
opportunity to Starbucks. One more opportunity that face by organisation that they
contribute in health consciousness.
 Economic Factors: The continuous growth in developing countries gives an opportunity to
Starbucks that they earn more revenues because of lowering in unemployment rates. In US,
there is rising of labour cost that increase threat for Starbucks.
 Technological Factors: Starbucks has opportunities that they can improve their
technologies by focusing more on mobile apps. Technology factors is very important to run
their business successful because it helps to compete in market.
 Legal Factors: It is analysed that Starbucks has facing threats of day to day increment in
employment regulations that they should be follow if they want to survive. If Starbucks
follow product safety rules, then it becomes opportunity for organisation so that they can
satisfy the needs and wants of people.
 Environmental Factors: It become important factor for Starbucks that they can improve
their strategies by adopting sustainability. They have an opportunity to follow the trend of
sustainable business.
PESTLE analysis is one of the factor that helps to analyse external or macro environment factors
that identify and analyse those all important factors that affects their business operations and
functions. Starbucks is an American company that run their business on global level. So that's why
it gets directly or indirectly affected by business environment i.e. dynamic nature.