SWOT Analysis: Starbucks

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Executive Summary
Starbucks is a coffeehouse corporation that produces delectable drinks and pastries. It has become one of the biggest coffee companies and is well known for their drink products including: Coffee, Tea, Frappuccino’s and Smoothies. Starbucks originated in Seattle’s Pike Place Market. Dunkin Doughnuts and McDonalds are currently Starbucks greatest competitors. Dunkin Doughnuts is one of the largest baked goods and coffee chains in the world with 65 percent of their product being in the retail beverage market. McDonald’s McCafe is Starbucks fastest growing competitor placing in the top three coffee sellers in 2015. Starbucks marketing budget is approximately 282.6 million dollars. Starbucks employs over 300,000 employees and operates in 75 countries, of these employees 157,000 work in the United States. [Smith] According to
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Providing the highest quality coffee, tea and choices, with a wide range of items on the menu. Having well-trained employees offering the best customer service.
• Largest coffeehouse chain in the world: o Operating 23,043 coffeehouses in 68 countries [Jurevicius]
• The most valuable coffeehouse brand in the world: o They have a strong reputation associated with excellent customer service and quality coffee.
Weaknesses
• The cost of coffee beans is the major influence over the firm’s profits o Relies on coffee sales, generating about 60 percent company sale [Jurevicius]
• Product Pricing o The price of coffee beans is unsteady, sometimes doubling in price in a year.
• Overdependence on revenue from Americas Segment o Starbucks United States segment accounts for 69 percent of its total sales. Weakening the companies changes in political, economic, environmental and legal conditions. It impacts the revenue and operating profit margins.

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