Starbucks Cofee Swot Analysis | Business

Friday, October 30, 2009

Starbucks Cofee Swot Analysis

Strengths
● Product diversification
● Established logo, developed brand, copyrights, trademarks, website and patents
● Company operated retail stores,International stores (no franchise)
● High visibility locations to attract customers
● Valued and motivated employees, good work environment
● Good relationships with suppliers
● Industry market leader
● Globalized
● Customer base loyalty
● Product is the last socially accepted addiction
● Widespread and consistent
● Knowledge based
● Strong Board
● Strong financial foundation


Weaknesses
● Size
● Lack of internal focus (too much focus on expansion)
● Ever increasing number of competitors in a growing market
● Self cannibalization
● Cross functional management
● Product pricing (expensive)

Opportunities
● Expansion into retail operations
● Technological advances
● New distribution channels (delivery)
● New products
● Distribution agreements
● Brand extension
● Emerging international markets
● Continued domestic expansion/domination of segment

Threats
● Competition (restaurants, street carts, supermarkets, other coffee shops, other caffeine based products)
● US market saturation
● Coffee price volatility in developing countries
● Negative publicity from poorly treated farmers in supplying countries
● Consumer trends toward more healthy ways and away from caffeine
● Fragile state of worldwide production of specialty coffees
● Alienation of younger, domestic market segments
● Corporate behemoth image
● Cultural and Political issues in foreign countries


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