Starbucks Swot Analysis (Brief)

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SWOT Analysis of Starbucks

Strengths (internal)
Many store locations

Brand loyalty/equity (I have heard people say that Dunkin’ just doesn’t do it for them in the morning)

Product consistency

Employees receive benefits

Atmosphere consistency (free WIFI & lounge/restaurant atmosphere) Employee benefits

* Eco‐friendly practices, for Starbucks is concerned with conserving energy, water, controlling climate change and recycling * Encourages commitment to environmental leadership of employees * The coffee cups are non-toxic and recyclable

Weaknesses (internal)
Only coffee products…..

Somewhat expensive (debatable, opinionated)

-Small shops

-High operation costs

Expanding too quickly (leading to a disadvantage?)

* Decrease in original
* Waste was created when they changed their logo in 2011 placed on the 10% recyclable cups, leaving them to have to dispose of cups that had the old logo.

Opportunities (external)
-Their rewards program has been successful, but there’s room for improvement on specials/promotions or coupons

Global/International expansion

Brand extension (room for more “non-coffee” products)

Could be offered as a menu coffee choice in restaurants (distribution)

Ability to appeal to a large market (coffee drinkers, hard working adults and students alike, people on the go, people who want a nice environment to drink coffee in, etc.)

* They are designing "green" inside their stores to incorporate furniture that is sustainable, cabinets built of 90% post-industrial material, tiles that are recyclable, paints containing low volatile organic chemicals and better efficiency lighting. Even the temperature inside stores is being regulated to conserve energy. * Companies that already have 100% recyclable cups/products (Starbucks plans to by 2015)

Threats (external)
Many known competitors/rivals (Dunkin’ Donuts, Caribou Coffee, even McDonald’s, Panera, etc.)

The higher prices...
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