Starbucks Strengths

Starbucks’ SWOT analysis is an excellent tool for providing valuable insight into the company’s performance and their current position in the coffee industry by evaluating their strengths, weakness, opportunities, and threats. Since inception, Starbucks has acted in accordance with their mission statement, operated with strong ethical values, and the company is committed to reducing their environment footprint. One of Starbucks greatest strength is their dominant position in the worldwide coffee industry and their strong brand recognition. The company is known for their high quality products, creating a community “Starbucks experience,” which provides a warm friendly relaxing environment with exceptional customer service. Starbucks offers …show more content…
Starbucks is heavily dependent on the high quality of Arabica coffee beans, which makes the purchasing price subject to significant volatility. Another weakness is Starbucks premium product prices may potentially cause working class consumers in the United States to switch to competitors like Dunkin Doughnuts or McDonalds for more affordable prices due to being on a budget or during stressful economic times. Additionally, Starbucks premium prices could pose some weaknesses for the company’s success in developing countries. Although, Starbucks is adding new food menu items, the company cannot compete with competitors like McDonalds who serves a variety of complete meals and beverages. Starbucks indoor seating capacity is relatively small compared to the large volume of consumers, which often presents a seating availability problem. Starbucks does offer outdoor seating, however many individuals do not like sitting outdoors due to weather conditions. Starbucks has a limited advertising market that mainly depends on word of mouth, which is not always positive for business …show more content…
The availability and unstable price of Arabica coffee beans is a serious threat to Starbucks financial performance. Additionally, any supply interruption due to bad harvest or weather conditions could increase cost factors for Starbucks, while an economic crisis decreases consumers spending habits. All these factors mentioned above greatly affect Starbucks profit. The coffee industry is a competitive market and the increase pressure from competitors like Dunkin Doughnuts and McDonalds is a major threat to Starbucks because they offer similar products at affordable prices. Starbucks expansion into the international market has provided tremendous opportunity and growth, but the company risk facing loss of sales from emerging competitors. Many consumers are making healthier choices that steer them away from purchasing coffee affecting Starbucks’ revenues. Starbucks must continue to develop new and creative approaches to overcome threats. The company must protect their trademark, continue to emphasize quality, and expand their brand staying true to their