Starbucks SWOT
Starbucks Corporation is a specialty coffee retailer with coffee houses around the world. Starbucks has 19,767 stores in 62 countries with annual revenue of approximately 15 billion (Geereddy, 2014). While Starbucks is an internationally known brand, a brief analysis shows that there are threats and weaknesses that can be addressed to make the corporation more powerful still.
Weaknesses
Starbucks’ prices for premium coffee and snacks are considerably higher priced than other less image related coffee retailers. To combat this weakness Starbucks can use their brand recognition to work towards less expensive options to customers who are not willing to pay for the premium products. The brand, being recognized nearly everywhere developed, should be able to support a more affordable option at least in certain areas. Starbucks stores are prevalent in urban and suburban areas. So much so that some stores are competing with each other driving the profitability of both stores down (Geereddy, 2014). To remedy the overcrowding and internal competition, Starbucks can begin to look at developing countries, and rural areas to spread their stores out to limit the race to the bottom between their own stores. Being a corporation that brings in revenues in the area of $15 billion in the current climate of corporations being seen as a negative, Starbucks must address the public’s growing disdain for large operations. Starbucks’ best weapon against this is their already well-established green initiative focusing on improving the communities that they operate in by reducing waste and recycling.
Threats
Starbucks holds nearly 38% of their market of operation with the nearest competitor moving up with 30% of the market share, and the rest of the competition making up the remaining share (Geereddy, 2014). The primary competitor is gaining ground every year and as such Starbucks must plan on differentiating themselves from direct competitors. Little can be done
Weaknesses
Starbucks’ prices for premium coffee and snacks are considerably higher priced than other less image related coffee retailers. To combat this weakness Starbucks can use their brand recognition to work towards less expensive options to customers who are not willing to pay for the premium products. The brand, being recognized nearly everywhere developed, should be able to support a more affordable option at least in certain areas. Starbucks stores are prevalent in urban and suburban areas. So much so that some stores are competing with each other driving the profitability of both stores down (Geereddy, 2014). To remedy the overcrowding and internal competition, Starbucks can begin to look at developing countries, and rural areas to spread their stores out to limit the race to the bottom between their own stores. Being a corporation that brings in revenues in the area of $15 billion in the current climate of corporations being seen as a negative, Starbucks must address the public’s growing disdain for large operations. Starbucks’ best weapon against this is their already well-established green initiative focusing on improving the communities that they operate in by reducing waste and recycling.
Threats
Starbucks holds nearly 38% of their market of operation with the nearest competitor moving up with 30% of the market share, and the rest of the competition making up the remaining share (Geereddy, 2014). The primary competitor is gaining ground every year and as such Starbucks must plan on differentiating themselves from direct competitors. Little can be done