Starbucks

1587 Words 6 Pages
SWOT Analysis
Strengths
(1) Starbucks is one of the several highly profitable organizations. So basically it has a very sound financial records.
(2) It is a global coffee brand with 22,000 retail stores in 67 countries. This makes it the largest coffee chain in the world.
(3) Starbucks belongs to the fortune 500 list and it is famous for valuing their human assets. It is recognized as the best employee management company. The company offers its employees a wide range of benefits and pay rate than the competitors.
(4) Starbucks is very active in displaying their corporate social responsibilities through ethical sourcing and many other social activities.
(5) For customers Starbucks is the premium coffee brand along with the unique and established
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The business can expand the number of coffeehouses with different products and drinks to reach broader customer group.
(4) Co-branding with the other food and drink manufacturers, and brand franchising of other goods and services both are having potential.
Threats
(1) Increased competition from the local cafes and specialization of other coffeehouse chains. Local cafes offer customer oriented menus at cheaper prices than the Starbucks. So Starbucks has to face intense competition and local market share.
(2) In developed market demand for coffee has reached its saturation level. It is hard to grow in this market. (3) Due to political, economic and weather conditions Starbucks may experience disruption in their supply. It might be costly for them.
(4) Coffee products are mainly dependent on the coffee beans and dairy products. The company has

no control over the pricing of these products.
(5) There is a possibility that any other drink than coffee might replace the demand for coffee among the customers.
(6) Starbucks is facing some issues related to trademark infringements. The company is often involved in the illegal use of its trademark which is costly and harmful to its
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The internet users have more demands for the innovative and attractive advertisements and web features. Starbucks is providing their users with effective website to meet the demands. Social networking has opened the new ways for people to connect with the business. Starbucks can improve its mobile applications and other linked services to gain the advantage of increasing mobile users. Because of the technology company can improve its supply chain management. However, there is a threat to Starbucks in the form of increasing availability of home-based specialty coffee machines (Smithson, 2015). There are several political factors impacting Starbucks. Such as regional integration of the market, improved government support for the infrastructure and many more which provides an opportunity for Starbucks for growth and future expansion. But there is always a threat before Starbucks in developed countries with red tapism (Smithson, 2015). Economic factors are always significant for every business including Starbucks. Factors such as potential for high growth in developed countries, decreasing the rate of unemployment etc. help Starbucks in generating more revenue. But the factor like rising labor cost is a threat because the company has to spend huge amount of raw materials (Smithson, 2015). There are several social factors which influence the coffee trends among the

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