Swot Analysis of Starbucks and Future Scenarios That May Affect Their Success.

Topics: Coffee, Starbucks, Coffeehouse Pages: 4 (880 words) Published: September 22, 2010

Week 3 assignment


SWOT Analysis of Starbucks and Future Scenarios that May Affect Their Success.

The complete SWOT analysis that analyzes Starbucks’ current situation and future prospects are as follows:

● 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)

● 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

● 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

A more specific look into Starbucks’ future prospects includes: Expansion and Acquisition. Starbucks Coffee Canada, Inc., a wholly-owned subsidiary of Starbucks Coffee Company...
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