It is a global coffee brand built upon a reputation for fine products and services. It has almost cafes in almost 40 countries. This case study has been compiled from information freely available from public sources.
The company must innovate and use its strengths to address threats in the external business environment of the coffee and coffeehouse industries.
Public Domain Starbucks Corporation also known as Starbucks Coffee Company maintains its position as the biggest coffeehouse chain in the world through innovative strategies that utilize business strengths in overcoming weaknesses to exploit opportunities and overcome success barriers, such as the threats in the coffee industry environment, as identified in this SWOT analysis.
The SWOT Analysis model is a strategic management tool that assesses the strengths, weaknesses, opportunities, and threats SWOT relevant to the business and its internal and external environment. In this business analysis case, the SWOT analysis of Starbucks Coffee considers the strengths and weaknesses internal strategic factors inherent in operations in the coffee, coffeehouse and related businesses.
Such a competitive environment requires that the company continuously improve its business strengths to optimize its financial performance and growth trajectory.
Starbucks Coffee operates in various industries that impose different challenges in growing the business. The variety of these industries has increased over time, as the company develops more products to complement its core coffeehouse business.
In the context of the SWOT analysis model, this condition creates a challenging business environment where the company needs to use different sets of competencies that match various industries. The company has a growing population of loyal customers, which adds to the stability of the coffeehouse business.
In the SWOT analysis model, the extensive global supply chain strengthens Starbucks by supporting operations. For example, the company has a global network of suppliers that are carefully selected based on criteria pertaining to quality, such as the quality of Arabica coffee beans.
Diversification minimizes the effects of market and industry risks. The internal strategic factors identified in this part of the SWOT analysis of Starbucks Corporation shows that the business has strengths that promote resilience through diversification and a global supply chain.
Weaknesses are internal factors that reduce or limit business capabilities. High price points Generalized standards for most products Imitability of products Starbucks has high price points that maximize profit margins but reduce the affordability of its products.
Also, this SWOT analysis considers generalized standards a weakness that limits the flexibility of the coffee and coffeehouse chain business. In addition, many Starbucks products are imitable. This business environment condition empowers competitors. Opportunities for Starbucks Corporation External Strategic Factors This part of the SWOT analysis model focuses on external factors that present opportunities for business growth and development.
In this case, the main opportunities available to Starbucks Coffee Company are: Expansion in developing markets Business diversification Partnerships or alliances with other firms Starbucks Corporation can increase its revenues through expansion in developing markets.
This opportunity draws attention away from the U. For example, through higher diversification, the company can reduce its dependence on its current industries, thereby improving overall revenue growth opportunities.
The external strategic factors in this part of the SWOT analysis show that Starbucks can improve its industry position by developing its operations to exploit the opportunities in the global industry environment. Threats are external factors that reduce or limit business performance.
In this company analysis case, the following are the main threats relevant to Starbucks Coffee Company: Competition involving low-cost coffee sellers Imitation Independent coffeehouse movements Starbucks Corporation competes against a wide variety of firms in the international market.
For example, the company competes against major restaurant chains that offer low-cost coffee products. Also, this SWOT analysis considers imitation as a major threat against the coffeehouse business.This Starbucks SWOT analysis reveals how the largest coffee chain in the world uses its competitive advantages to continue growing so successfully all over the world.
It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. Strategic Analysis Of Starbucks Corporation There is an expected shift towards healthy eating and diet among the consumers in , and this could be a potential threat to the industry as they become more aware of issues related to weight and obesity.
Would you like a lesson on SWOT analysis?. Strengths. Starbucks Corporation is a very profitable organization, earning in excess of $ million in The company generated revenue of more than $ million in the same year.
Jul 04, · SWOT analysis in practice - Starbucks Strategy analysis has two main branches – analysis of a firm’s external environment and analysis of a firm’s internal environment. Starbucks SWOT Analysis: The Best Coffee Makers A definition for novice readers: SWOT is an acronym for S trengths, W eaknesses, O pportunities and T hreats related to organizations.
SWOT is also referred, as the “SWOT Matrix”. In this article, we will attempt to address these questions by taking a brief look at Starbucks’ business and performing an easy-to-follow SWOT analysis of the company, evaluating its Strengths, Weaknesses, Opportunities, and Threats.