Essay on Starbucks SWOT Analysis
Executive Analysis Starbucks Corporation, founded in 1971, is a retailer of specialty coffee. Starbucks retails a variety of drip brewed coffee, espresso-based hot drinks, other hot and cold beverages, complementary food items, coffee-related accessories and equipment, teas, ice cream, and items such as mugs, coffee beans, and music and other non-food products through retail stores in approximately 39 countries worldwide. The company operates primarily in the US. It is headquartered in Seattle, Washington and employs about 150,000 people. Starbucks mission is “To inspire and nurture the human spirit— one person, one cup, and one neighborhood at a time” (www.Starbucks.com). Top management …show more content…
Strengths Starbucks Corporation is a very profitable organization, earning in excess of $700 million in 2006. It is a global coffee brand built upon a reputation for fine products and services. Due to its specialization in all things coffee, it achieves high buying volumes, and utilizes international sourcing, some from fair trade suppliers. It has almost 9000 cafes in almost 40 countries. Starbucks was one of the Fortune Top 100 Companies to Work For in 2007, ranked at number 16 (www.money.cnn.com). The company is a respected employer that values its workforce. The organization has strong ethical values and an ethical mission statement as follows, “Starbucks is committed to a role of environmental leadership in all facets of our business” (www.starbucks.com). It has a strong brand image associated with high quality coffee and excellent customer service. The company franchises and licenses 6,500 shops and has developed excellent skills in franchise management.
Weaknesses Starbucks has a reputation for new product development and creativity. Starbucks is a premium brand commanding premium prices. However, they remain vulnerable to the possibility that their innovation may diminish over time. The organization has a strong presence in the United States of America with more than three quarters of their cafes located in the home market. It is often argued