Comprehensive SWOT Analysis Report: Starbucks Coffee Company

This report presents a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of Starbucks. The analysis examines Starbucks' strong financial performance, brand recognition, and high volume as key strengths. Weaknesses include dependence on coffee bean prices, high product prices, and corporate social responsibility issues. Opportunities for Starbucks involve expanding into different market segments and consumer demographics. Threats to the company include rising coffee bean prices, competition from local coffee houses, legal issues, and external factors such as weather and political instability. The report concludes that while Starbucks faces challenges, it is effectively managing them and achieving its targets. The report also provides a visual representation of the SWOT analysis and includes a list of references.

SWOT Analysis of
Starbucks

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
SWOT Analysis of Starbucks.....................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
SWOT Analysis is the strategic technique that supports organization in identifying its
strength, weakness, opportunities and threats. Here SWOT analysis of Starbucks will be
discussed in report. Starbucks is an American brand which deals in beverages and snacks
(Mhlanga,2018). This company has its own brand image which attracts huge customers.
MAIN BODY
SWOT Analysis of Starbucks
Strengths
Strong financial performance
Strong financial performance is the key strength of Starbucks which helps the company to
occupy number one position in the world of beverages and coffee industry.
Brand name and quality
The strength of Starbucks is brand name due to which The consumer creates a good image in
their mind which includes excellent quality at reasonable price. Also, company is dominant for
their competitors.
Figure 1: SWOT analysis
Source: (SWOT of Starbucks, 2017)

High volume and size
The company Starbucks is having the largest coffee house all over the world. They serve their
products at premium prices and this attracts a lot of customers (Hoffman, and Gold,2015).
Satisfied employees and management
The Starbucks treat their employees as an important element. They welcome them and offer
them positivity at Starbucks which satisfy employees. The company give benefits and higher pay
to employees than what other rivalry offers them. This tend employees to retain with Starbucks.
Rise in Profitability
The Starbucks is earning a huge amount of profit from their brand image. This helps them in
increasing their global presence that directly increases their profit. This help them to create a
competitive advantage.
Attractive spot
The food offered by Starbucks make consumers feel convenient and they find Starbucks as a spot
for Lunch, Snacks and breakfast. This is also a strength of the company that it attracts many
customers.
Weaknesses
Price of key inputs
Starbucks is dependent on coffee beans. Thus, the price fluctuations in beans prices increases the
cost of final product (Gonzalez-Shalaby2016). There is a huge risk associated with coffee beans.
High prices of products
The company charges comparatively very high from their competitors. Which increases the
budget of consumers, so they prefer McDonald's and others instead of the coffee of Starbucks.
Corporate Social Responsibilities
Starbucks was found indulged in various unethical activities which negatively impact position of
company among public. The company don't prefer for any Corporate social responsibilities for
the society which depletes its goodwill and therefore affect performance (Mohammadian, 2017).
Lack in local taste
It is an American brand which offers no diversity in stores all over the world. The coffee they
supply have not tasted like what local taste of coffee people usually consumer. So, the taste of
coffee is not preferred to consume by people who love cultural taste of coffee.
Opportunities

Different market segment
The Starbucks has an opportunity to expand in different market segment such as urban areas.
There is business opportunity for the company to expand and capture a great market share.
Consumer segment
Starbucks can expand their retail stores in areas where it still not opened. The company need to
do study of coffee habit of people all over the world and open new stores accordingly
(Mohammadian,2017). This way Starbucks can capture a greater market share and a new
consumer segment can also gain by them. The targeted consumer segment is young adults.
Threats
Rising prices of coffee beans
Starbucks is wholly depended on coffee beans but the price fluctuations is becoming a huge
threat for the company. Also, the increase in price of dairy products affects total cost of final
product which simultaneously affects profitability of Starbucks.
Threat from local coffee house
The Starbucks is facing threat from local coffee house of all countries. The company has a huge
supply chain in various parts of countries. The customer who prefer local cultural tastes in their
beverages will never attract with taste of Starbucks.
Legal threats
The company is facing legal threats like Trademark issues and other laws, which can depletes
profitability of Starbucks (Trenggono, Daryanto and Sanim, 2018). These legal hazards increases
costs of the company.
Threat from External factors
Starbucks is facing threat from weather or other natural hazards. Also, company is dealing
globally which activates political hazards for them. Sometimes, labour strikes and internal
disturbance also affects company’s functionality and profitability.
CONCLUSION
Report covers SWOT analysis of Starbucks. It has been concluded from the report that such
a big brand like Starbucks also had weaknesses and threat. But company is dealing with them
efficiently and effectively. Starbucks is achieving their targets on time.

REFERENCES
Books and Journals
Mhlanga, O., 2018. The fast food industry in South Africa: the micro-environment and its
influence.
Hoffman, A. and Gold, N., 2015. Target corp’s tarnished reputation: Failure in Canada and a
massive data breach. Rotterdam School of Management, Erasmus University.
Gonzalez-Shalaby, M.S.N., 2016. Use of the Patient Whiteboard to Improve Communication of
Pain Medication Schedule.
Mohammadian, H.D., 2017. Principles of Strategic Planning.
Trenggono, B., Daryanto, A. and Sanim, B., 2018. Model Bisnis dan Strategi Pengembangan
Usaha Pada The Coffee Bean dan Tea Leaf (TCBTL). Jurnal Aplikasi Bisnis dan
Manajemen (JABM). 4(3).
Online
SWOT of Starbucks. 2017. [Online]. Available through :
<https://starbucksstarbucksinfo.weebly.com/recommendations.html>.