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SWOT Analysis of Starbucks: Diversification and Global Supply Chain as Competitive Advantage

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Added on  2019-09-16

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This article provides a SWOT analysis of Starbucks, highlighting its strengths, weaknesses, opportunities, and threats. The company's global supply chain and diversification are identified as competitive advantages. The article also discusses the target audience of the company and its market research strategies.
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SWOT Analysis
SWOT Analysis of Starbucks: Diversification and Global Supply Chain as Competitive Advantage_1
Starbucks is considered as one of the most popular brand globally. The target audience of the company is growing tremendously as the company is providing high quality of products and services within the specific time framework. The company has a global supply chain which provides competitive advantage to the company. There are various subsidies which are acquired by the company such as Seattle’s Best Coffee, Ethos Water, and Teavana. The SWOT analysis ofthe company shows diversification and global supply chain as the competitive advantage to the company (Ayub et al., 2013). The target audience of the company is higher middle class and prices are relatively higher which acts as a weakness for the company. The company offers generalized corporate standards that make products less aligned in terms of café ambience and products. The SWOT analysis shows that company has innovative products and services which enable to overcome its weaknesses through providing competitive advantage to the company. The company has various opportunities in order to expand its profitability through expansion in Middle East and Africa as the company has minimum presence here and the company can also expand its operation in Asia due to high economic rate in these regions. The company has diverse range of products which provide competitive advantage to the company. The SWIR analysis shows that the company has wide opportunities to generate high profitability. The threats of the company include high competitors such as McDonald’s and Dunkin’ Donuts who are providing low cost coffee to the competitors. There is a high threat of new competitors who can attract the target audience. There are various new entrants who are imitating such as Star and Bucks in Palestine territories. The trend of supporting coffee house by the social movement for independent coffee house is providing benefits to the company. This section shows that the company has potential threats and opportunities.
SWOT Analysis of Starbucks: Diversification and Global Supply Chain as Competitive Advantage_2

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