Swot Analysis for Starbucks Corp.

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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

Increased competition from coffee shops and others (restaurants, street carts, supermarkets)

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 monster image

Cultural and Political issues in foreign countries

Strengths
High visibility locations to attract customers

Established logo, developed brand, copyrights, trademarks, website and patents

Company operated retail stores, International stores (no franchises)

Valued and motivated employees, good work environment

Good relationships with suppliers

Industry market leader with a globally renowned brand

Customer base loyalty

Product is the last socially accepted addiction

Widespread and consistent

Knowledge based

Weaknesses

Lack of internal focus (too much focus on expansion)

Ever increasing number of competitors in a growing market

Cross functional management

Product pricing (expensive)

Major Marketing Problem
Starbucks has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may falter over time. The organization has a strong presence in the United States of America with more than three quarters of their cafes located in the home market. It is often argued that they need to look for a portfolio of countries, in order to spread business risk. The organization is...
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