Swot Analysis Starbucks

SWOT Analysis: Starbucks External Environment: Opportunities: Company adopted many new initiatives throughout the years. Some of those include the replacement of the automatic espresso machines by a new machine called Mastrena. Mastrena is smaller than the current equipment and thus allows more efficiency; it also allows the barista to make direct eye contact with the customer. The company also acquired the Coffee Equipment Company, maker of Clover (brews coffee by the cup). Introduction of the Rewards Card, which is pre-loaded and gives customers more flexibility in the way they purchase Starbucks products. International expansion (form partnerships abroad for a quicker adaptation). Arrival of new products and services Stronger presence in supermarkets (increased exposure). Industry Environment: Pretty weak around the early 1980s but grew drastically between 1989 and 1999 (number of specialty coffee retailers grew from 585 to 12,000 and reached 24,000 the end of 2006). Threats: Competitors: Dunkin Donuts (vanilla spice coffee, Pumpkin Latte), McDonalds (McCafes, www.unsnobycoffee.com). Peet’s Coffee & Tea, Coffee Bean & Tea Leaf, Caribou Coffee Internal Environment: Strengths: Strong financial health (cash available for greater expansion, more involvement for social actions). Brand Name The company introduced the website www.mystarbucksidea.com where anyone with an internet connection can give his/her opinion about the company in order to help improve its services. Big environmental awareness through different social actions and partnerships (partnership with Conservation International). Weaknesses: Harder to maintain the direct relationships as the company grows Implementation of more automated systems to boost efficiency and make the shareholders happy; the direct result could be an alienation of the employees. High