Comprehensive SWOT Analysis of Starbucks: Business Strategies

This report presents a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of Starbucks. The introduction highlights Starbucks' establishment, market share, and business objectives. The strengths include its quality products, environmental friendliness, and clear reinvestment strategy, while weaknesses include high prices and a lack of uniqueness in some products. Opportunities discussed involve expansion into new markets and collaborations. Threats identified are competition from Dunkin' Donuts and McDonald’s, along with potential shifts in consumer preferences. The conclusion summarizes how Starbucks leverages its strengths and opportunities to mitigate weaknesses and threats. The report references sources that support the analysis.

SWOT Analysis of Starbucks
1

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
SWOT analysis of Starbucks...........................................................................................................3
CONCLUSION....................................................................................................................................4
REFERENCES.....................................................................................................................................5
2

INTRODUCTION
The present study is based on SWOT analysis of Starbucks organization. It will help in gain
an understanding towards the organization strategic planning process and its link with the business
objectives. Starbucks has opened its business in 1971 where by opening first shop, it has gained a
good success and has obtained a high market share. In the present time, organization is operating
6793 stores (Dalavagas, 2016). Motto of the company has established the firm as the premier
supplier of the finest coffee in the world by maintaining inflexible principle of growth. In this
context, SWOT analysis will give a deeper insight about how Starbucks has achieved the following
objective.
SWOT analysis of Starbucks
Strengths: In terms of quality, ethically and profitability, Starbucks have established its
business as a first-class coffeehouse chain in worldwide as compare to other fast food chains. The
products offers by the company are excellent in quality and environmental friendly. Due to this
reason, firm charge high prices from the customers where most of them ready to pay. Along with
this, company has a clear reinvestment strategy by which firm has expanded its business at various
locations. The cited corporation has a well planned growth strategy and it has seemed to be good for
the business. Further, Starbucks has treated very well to its hundreds of thousands of employees
(Orta, von Feigenblatt, Lemus and Rivero, 2015).
Weaknesses: High price point can be considered as a major weakness of Starbucks. The
higher prices tags on the products have discouraged many of the customers who want to consume
Starbucks products on their daily lives. Cited company has also known for its pumpkin spice lattes,
frappucinos and big chocolate chip cookies products. These are not that much unique because many
of the other coffee shops have offered similar kinds of food items to its customers (Bush, 2016).
Opportunities: Starbucks has already run its business in the US but still there are many of
the regions where company can easily earn handsome amount of profit such as Central Europe,
India and Africa. In addition to this, firm can make collaboration with the supermarkets so that
consumers can easily access the products of Starbucks. This will be a great way to boost up the
brand value of the business in the marketplace. Along with this, there is an opportunity in front of
Starbucks to tie up with the other co-brands and companies where Starbucks products will offer as a
complementary with other food items (Dalavagas, 2016).
Threats: There are two major competitors of Starbucks: Dunkin Donuts and McDonald’s.
These companies are directly competing with their products which are similar to Starbucks offer
eatable items. Rival firms have offered the food items at lowest rate as compare to the cited coffee
3

chain organization. Along with this, firm has deal in three specific markets: coffees, convenient
snacks and teas. If in the future, consumers shift from these products then it will create a big issue
for Starbucks to struggle in the marketplace.
CONCLUSION
From the above SWOT analysis of Starbucks, it has been clear that strengths of the company
have helped the business to maintain competitive edge. While opportunities have assisted the firm
to globally expand the business. By using both, company has able to minimize the weaknesses and
deal with the threats.
4

REFERENCES
Bush, T., 2016. SWOT Analysis of Starbucks, the World’s Leading Coffeehouse Chain. [Online].
Available through: <http://pestleanalysis.com/swot-analysis-of-starbucks/>. [Accessed on
31th January 2017].
Dalavagas, I., 2016. SWOT Analysis: Starbucks Corp. [Online]. Available through:
<http://www.valueline.com/Stocks/Highlights/SWOT_Analysis__Starbucks_Corp_.aspx#.
WJAlOdJ97IU>. [Accessed on 31th January 2017].
Orta, M., von Feigenblatt, O.F., Lemus, E. and Rivero, O., 2015. Starbucks Corporation: Leading
Innovation in the 21 st Century. Journal of Alternative Perspectives in the Social
Sciences. 7(1).
5