Starbucks Swot Analysis (Brief)
SWOT Analysis of Starbucks
Strengths (internal)
Many store locations
Brand loyalty/equity (I have heard people say that Dunkin’ just doesn’t do it for them in the morning)
Product consistency
Employees receive benefits
Atmosphere consistency (free WIFI & lounge/restaurant atmosphere)
Employee benefits
* Eco‐friendly practices, for Starbucks is concerned with conserving energy, water, controlling climate change and recycling * Encourages commitment to environmental leadership of employees * The coffee cups are non-toxic and recyclable
Weaknesses (internal)
Only coffee products…..
Somewhat expensive (debatable, opinionated)
-Small shops
-High operation costs
Expanding too quickly (leading to a disadvantage?)
* Decrease in original * Waste was created when they changed their logo in 2011 placed on the 10% recyclable cups, leaving them to have to dispose of cups that had the old logo.
Opportunities (external)
-Their rewards program has been successful, but there’s room for improvement on specials/promotions or coupons
Global/International expansion
Brand extension (room for more “non-coffee” products)
Could be offered as a menu coffee choice in restaurants (distribution)
Ability to appeal to a large market (coffee drinkers, hard working adults and students alike, people on the go, people who want a nice environment to drink coffee in, etc.)
* They are designing "green" inside their stores to incorporate furniture that is sustainable, cabinets built of 90% post-industrial material, tiles that are recyclable, paints containing low volatile organic chemicals and better efficiency lighting. Even the temperature inside stores is being regulated to conserve energy. * Companies that already have 100% recyclable cups/products (Starbucks plans to by 2015)
Threats (external)
Many known competitors/rivals (Dunkin’ Donuts, Caribou Coffee, even McDonald’s, Panera, etc.)
The higher prices
Strengths (internal)
Many store locations
Brand loyalty/equity (I have heard people say that Dunkin’ just doesn’t do it for them in the morning)
Product consistency
Employees receive benefits
Atmosphere consistency (free WIFI & lounge/restaurant atmosphere)
Employee benefits
* Eco‐friendly practices, for Starbucks is concerned with conserving energy, water, controlling climate change and recycling * Encourages commitment to environmental leadership of employees * The coffee cups are non-toxic and recyclable
Weaknesses (internal)
Only coffee products…..
Somewhat expensive (debatable, opinionated)
-Small shops
-High operation costs
Expanding too quickly (leading to a disadvantage?)
* Decrease in original * Waste was created when they changed their logo in 2011 placed on the 10% recyclable cups, leaving them to have to dispose of cups that had the old logo.
Opportunities (external)
-Their rewards program has been successful, but there’s room for improvement on specials/promotions or coupons
Global/International expansion
Brand extension (room for more “non-coffee” products)
Could be offered as a menu coffee choice in restaurants (distribution)
Ability to appeal to a large market (coffee drinkers, hard working adults and students alike, people on the go, people who want a nice environment to drink coffee in, etc.)
* They are designing "green" inside their stores to incorporate furniture that is sustainable, cabinets built of 90% post-industrial material, tiles that are recyclable, paints containing low volatile organic chemicals and better efficiency lighting. Even the temperature inside stores is being regulated to conserve energy. * Companies that already have 100% recyclable cups/products (Starbucks plans to by 2015)
Threats (external)
Many known competitors/rivals (Dunkin’ Donuts, Caribou Coffee, even McDonald’s, Panera, etc.)
The higher prices