SWOT analysis involves looking at the internal strengths and weaknesses of a business and external opportunities and threats. In other word, it is used to analyze the possible internal advantages and problems that a business has, and to determines the external factors of the business which may affect its strategy. The purpose of a SWOT analysis is to conduct a general and quick examination of a business’s current position so that it can help the business to develop or plan a direction of development or a proper strategy in future. Uses of SWOT analysis:
SWOT analysis is an effective way of gathering and classifying information, illustrating particular matters, and generating strategic planning ideas for a business. The result of the analysis may provide a basis on which a more detailed analysis can be conducted. SWOT analysis is, therefore, often used as a method by which a business or its marketing department can plan its marketing strategy. Strengths
1. Sound financial records. Starbucks profitability has been rising for the past few years and is now 14%. The company also outmatches its nearest competitors with 24.54% return on investment and 29.16% return on equity. 2. No. 1 brand in coffeehouse segment, valued at $4 billion. Starbucks has a strong brand reputation associated with quality coffee and excellent customer service. Its brand is the most valuable brand in coffeehouse segment and is valued at $4 billion. 3. “Starbucks experience”. One of the strongest advantages Starbucks has is the experience it delivers to its customers with perfectly blended coffee, premium music, friendly staff and warm atmosphere, which results in incomparable customer service. 4. Largest coffeehouse chain in the world. The company operates around 20,000 coffeehouses in 60 countries, making it the largest coffeehouse chain in the world. 5. Employee management. The company offers its employees extensive range of benefits and a pay rate higher than offered by...
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