Strength And Swot Analysis: SWOT Analysis Of Starbucks

751 Words 4 Pages
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…
Through the years, Starbucks has formed and maintained solid long-term relationships building trust with suppliers, business associates, partners (employees), and consumers that is mutually beneficial. Starbucks has gained a competitive advantage in the international markets by delivering a strong market and global recognition. The rapid growth in 2014 enabled the company to open 1599 new stores through out the globe, which ultimately increased revenues. Starbucks operating efficiency and strong growth lead to Starbucks healthy financial performance in fiscal year 2014. Starbucks reported revenues of $16448 million at the end of September, an increase of almost 11% over fiscal year 2013 of $14892 million. Operating profit of US $3081 million compared to the operating loss of $325 million in 2013. Additionally, Starbucks recorded at net profit margin of 12.57 % compared to the low net profit margin of …show more content…
Starbucks is using technology as a strategy to effectively leverage the use of their mobile application. The company is creating new partnerships or alliances with other firms such as Postmates, an online delivery system, to help deliver Starbucks food and beverages to consumers who use Starbucks’ Mobile Order & Pay App. Additionally, Starbucks is trying another delivery service called Green Apron where Starbucks’ baristas transport their products to specified locations. Consumers want fast, convenient, reliable products and services, therefore Starbucks innovative delivery service has the ability to entice technological consumers and increase sales. Starbucks needs to continue their expansion globally before other companies saturate the international

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