Starbucks Swot Analysis

Topics: Starbucks, Coffee, Espresso, Coffeehouse / Pages: 8 (1831 words) / Published: Dec 13th, 2005
Starbucks' Strategic Planning Using SWOTT Analysis
"Mirror, mirror, on the wall, who's the fairest of them all?" – The Queen in Snow White. Beauty is only skin deep, companies must also look within to secure longevity. Before a company can successfully bring a mission statement and vision to fruition, they must take a good hard look into the mirror. A company must reflect upon internal strengths and weaknesses, external opportunities and threats, and consider the trends associated with each (SWOT analysis). The fundamental process of strategic planning is through the encompassment of SWOT analysis. Taking a bite from the poisonous apple will be inevitable if a company fails to self-evaluate and strategically plan for the future. Starbucks Coffee Company is a paradigm of effective strategic planning through SWOT analysis. Astute analysis coupled with the ability to act swiftly has catapulted them to the position as the number one gourmet coffee retailer. They continue to document increased revenue annually and maintain a majority share of the gourmet coffee market.
Strengths Weaknesses
• Product diversification
• Customer loyalty
• High visibility • Self-cannibalization
• Price
• US market reliance
• Problems in some international operations
Opportunities Threats
• Expansion into retail operations
• Technological advances
• Expand globally
• Brand extension
• Product distribution • Competition
• Prices of coffee beans and dairy
• Economy
• Political tensions in global markets
Figure 1. SWOT Analysis for Starbucks Corporation
Strengths
Starbucks serves up strong drinks and remains strong as the leader in the coffee industry market through product diversification, customer loyalty, and high visibility. Starbucks caters to the addictions and satisfies the needs of socioeconomic groups attempting to beat the daily grind. Got Milk? Starbuck does, and they put a spin on the famous marketing campaign to add calcium to the diet; they have created a



References: Berry, D. (2002). Milk and sugar, please: One of the hottest trends these days is actually quite cold. Retrieved October 15, 2005, from http://findarticles.com Griffith, E. (2003). T-mobile cut price of Wi-Fi. Retrieved October 7, 2005, from http://www.wifiplanet.com/news/article.php/1855971 Petrecca, L. (2005). Fast-food restaurants spruce up coffee. Retrieved October 15, 2005, from http://www.usatoday.com/money Singer, J. & Fackler, M. (2003, July 15). Starbucks changes mix in Tokyo, Shanghai; as latte business slows in Japan, the chain may try new products: Beer, wine and coffee cocktails. Wall street journal, A6. Retrieved October 7, 2005, from ProQuest database. The City Paper. (2005, June 29). The Starbucks effect: Luxury brands for everyone. Retrieved October 13, 2005, from http://www.nashvillecitypaper.com/index.cfm?section_id=51&screen=news&news_id=42505USA Today. (2004). Starbucks to boost coffee prices in U.S. Retrieved October 10, 2005, from http://www.usatoday/money Weber, G. (2005). Preserving the Starbucks ' counter culture. Retrieved Oct. 10, 2005, from http://www.workforce.com/section/06/feature/23/94/44/ Wong, B (2004). Cup of Starbucks going up average of 11 cents Oct. 6. Seattle Post- Intelligencer Reporter. Retrieved October 14, 2004. from http://seattlepi.nwsource.com/business/192721_coffeeprice28.html

You May Also Find These Documents Helpful

  • Swot Analysis Starbucks
  • Swot analysis of starbucks
  • Starbucks SWOT Analysis
  • Swot Analysis Starbucks
  • Starbucks SWOT analysis
  • Starbucks Swot Analysis
  • Starbuck SWOT Analysis
  • A Swot Analysis of Starbucks
  • Swot Analysis of Starbucks
  • SWOT Analysis: Starbucks