SWOT Analysis Example for Starbucks

Sample SWOT Design for Starbucks Coffee

Strengths for Starbucks

Effective new product development process
Efficient logistics system
High service levels
Beneficial economies of scale
Solid financial reserves
Clear value proposition
Great customer experience delivered
Strong market share
High quality products
Attractive store design/layout
Broad sales area coverage
Good bargaining power with suppliers
Strong franchisee relationships
Global coverage and reach
Highly convenient locations
Success in entering new markets
Broad market appeal
High brand awareness
Strong brand equity
Strong international brand

Weaknesses for Starbucks

Mixed quality staff
Reliance on a single brand
Awkward franchisee relationships
Broad competitive set
Dynamic competitive landscape
Low barriers to entry to the market
Many substitute competitive products
Significant price-based competition

Opportunities for Starbucks

Data mining of our customer  database
Develop strategic alliances
Further develop our sales/service team
Develop and implement a CRM program
Grow customer loyalty/retention
Improve the overall customer experience
Add increased product augmentation
Develop break-through new products
Develop new products for international markets
Build relationships with influencers
Redesign our key stores/outlets
Acquire a competitor’s successful brand
Increase our corporate social responsibility image
Pursue co-branding opportunities
Utilize key sponsorships to broaden our brand
Creating more engaging social media content
Acquire key competitors
Demand for home delivery services
Use environmental issues to reduce our cost structure

Threats for Starbucks

High staff turnover
A disconnected, and less loyal, customer base
Changes in consumer spending patterns
Consumers becoming more price sensitive
Competitors introducing better/improved products
Loss of market share
Adverse media attention
Significant change in consumer behavior
New products cannibalizing our existing sales
Being too ethnocentric
Inability to grow the customer base long-term
Increased market fragmentation
Poor ratings on review websites
Being perceived as slow and outdated
Limited corporate social responsibility brand image
Poor brand fit to international markets
Deteriorating franchisee relationships
Growing competitive set
Declining economic conditions
Home delivery competitors

Overall SWOT for Starbucks (Image)

SWOT analysis for Starbucks

About Starbuck’s Strategy

From the beginning, Starbucks set out to be a different kind of company. One that not only celebrated coffee and the rich tradition, but that also brought a feeling of connection.

Our mission to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time.

Expect More Than Coffee

We’re not just passionate purveyors of coffee, but everything else that goes with a full and rewarding coffeehouse experience. We also offer a selection of premium teas, fine pastries and other delectable treats to please the taste buds. And the music you hear in store is chosen for its artistry and appeal.

It’s not unusual to see people coming to Starbucks to chat, meet up or even work. We’re a neighborhood gathering place, a part of the daily routine – and we couldn’t be happier about it. Get to know us and you’ll see: we are so much more than what we brew.

We make sure everything we do is through the lens of humanity – from our commitment to the highest quality coffee in the world, to the way we engage with our customers and communities to do business responsibly.

Source: Starbucks

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