Starbucks SWOT analysis
SWOT analysis is a tool for auditing an organization and its environment. SWOT analysis is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses, opportunities and threats.
Positive internal factor of Starbucks – Strengths (characteristics of the business or project team that give it an advantage over others)
Starbucks Corporation is a very profitable organization, earning in excess of $600 million in 2004.The company generated revenue of more than $5000 million in the same year.
Strong brand image associated with quality coffee and excellent customer service (“The Starbucks Experience”)
Store location is an important competitive factor and Starbucks has secured its presence in many of the most desirable corners of the planet.
Relationship with their workforce (e.g. employees treated as partners)
Wide variety of product offerings
Offers free Wi-Fi in stores and a comfortable space for its customers
Negative internal factor of Starbucks – Weaknesses (characteristics that place the team at a disadvantage relative to others)
Starbucks products are more expensive than those offered by the competition, and customers could easily switch to lower priced alternatives in times of economic hardship.
Health implications of coffee consumption are a matter of debate and many of the company´s products have high calories and fat content
Organization has strong presence in the U.S. with more than ¾ of their cafes located in the home market/ lack of international presence
Rapid decline of satisfactory customer service as observed from comments on MyStarbucksIdea.com
More focused on the “adult consumer”. Limited menu options for kids
Positive external factor of Starbucks – Opportunities (external chances to improve performance e.g. make greater profits in the environment)
Starbucks are very good at taking advantage of opportunities. In 2004 the company created a CD-burning service