Starbucks SWOT

Topics: Starbucks, Howard Schultz, Espresso Pages: 3 (876 words) Published: October 13, 2013
This document reviews the strategy of Starbucks. Here is a SWOT analysis of Starbucks: Strengths:
Renowned organisation
Dominance- change of logo but consumers still recognising the company •Very powerful brand in the coffee industry
Worldwide stores- ability to capture key locations with many stores in close proximity •Strong ethical values
Has the lowest staff turnover in the industry
Offers other products
Stores are in visible places
Market leader- highest share in coffee industry
Strong financial foundation.
Brand associated with high quality coffee
Weaknesses:
Dependent on one product line (coffee)
Not much focus on the business internally, most focus on expansion •More competitors are coming into the market
High prices, even when high quality is considered
Closed down some outlets due to not many sales in some areas Opportunities

Whole bean sales in supermarkets
Providing Wi-fi
The ‘App’ for smartphones
Starbucks coffee for use in Tassimo home coffee machines •They are still looking to open new shops in key areas.
Expanding out of just coffee into other industries- alcohol, clothing etc.

Threats
Competition from other coffee chains
Lack of ownership on coffee farms can lead to price fluctuations

The main factor that has affected the recent economic climate has been the recession that has just ended. During this recession thousands lost their jobs and this affected many businesses because people had no money to spend and started spending more wisely. Starbucks didn’t struggle during the recession. Howard Schulz (2010) stated that even though the UK has been in a recession, Starbucks was still an affordable luxury to people and while they may not be able to afford a luxury car or go out for a fancy meal, he claims that most people should be able to afford a great cup of Starbucks coffee. Howard Schultz (Starbucks Chief Executive) realised that it is difficult to maintain the...

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Constantineau,B (2008) Starbucks launches campaign to reward faithful latte lovers in Vancouver [online]. Nexis UK. August 2008. Last accessed on 3rd April 2011 at: http://www.lexisnexis.com.lcproxy.shu.ac.uk
DailyRecord (2010). Starbucks bounces out of recession by trebling profits. [online]. Last accessed on 3rd April 2011 at: http://www.dailyrecord.co.uk
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Schultz,H. (2010). Starbucks boss Howard Schultz on beating the recession. [online video]. Last accessed on 31 March 2011 at: http://news.bbc.co.uk.
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