The swot analysis of starbucks reveals the many strengths housed by the worlds biggest coffeehouse chain. Looking for the best starbucks corporation swot analysis in 2020. Swot analysis is a strategic planning tool that can be used by starbucks managers to do a situational analysis of the company. Although the swot analysis is widely used as a strategic planning tool, the analysis does have its share of limitations. Starbucks has targeted the right segment of the market which is the premium one in the market. Swot analysis and development of strategies swot analyses derive their name from the assessment of the strengths s, weaknesses w, opportunities o, and threats t faced by an industry, sector, company or any organisation gao and peng, 2011. During the same year, revenue from companyoperated retail locations accounted for 85% of the companys total revenue. Appendix 7 the business strategy of starbucks is identical to the corporate level strategy, focusing on coffeerelated products as the premier purveyor of the finest coffee in the world and maintenance of great environment. An analysis on the market segmentation of starbucks and city cafe. This is not an example of the work produced by our essay writing service. This restaurant is a coffee company and was first opening store in usa. According to the starbucks website, in order to purchase fair trade certifieda.
In order to target this segment, the company has focused on providing comfort than convenience and valueadded services which make the customer feel that it is worth what is being paid for. According to a digital coco marketing analysis of social media sentiment in the first half of 2012, starbucks is the most loved of 3,400 food and restaurant brands. Starbucks business strategy focuses on setting the pace for all other coffee houses and fastfood eateries such as mcdonalds and dunkin donuts. Swot is a tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Swot analysis of the coffee wars in india starbucks 2012 hbr case solution. Starbucks swot analysis 2016 free linkedin slideshare. Also, this swot analysis considers generalized standards a weakness that limits the. Coffee wars in india starbucks 2012 case study solution. In order to target this segment, the company has focused on providing comfort than convenience and valueadded services which make the customer feel. It includes indicating the destination of the business wander or venture and recognizing the inward and outer calculates that are positive and unfavorable to accomplishing that target. Starbucks corporation, an american company founded in 1971 in seattle, wa, is a premier roaster, marketer and retailer of specialty coffee around world. Dec 03, 2012 applying a swot analysis to starbucks global expansion strategy shows why they have been successful overcome the crisis.
Strategic analysis of starbucks corporation 1 introduction. An analysis of starbucks as a company and an international business. It increased its number of stores from 1,886 to 31,256 between 1998 and 2019. Applying a swot analysis to starbucks global expansion strategy shows why they have been successful overcome the crisis. Social media analysis for starbucks linkedin slideshare. Sbux is the biggest coffeehouse chain in the world based on its number of operating stores. In this case, the company of my choice is starbucks. Starbucks faces tough competitors in many of its global markets. During the same year, revenue from companyoperated retail locations accounted for 85% of. One reason is its success in appealing to super influencers mainly men and women in the 1849 age group. Starbucks swot analysis 6 key strengths in 2020 sm insight.
Social media analysis advertising media planning zhai mengjie 1 18 2. The last element in the swot analysis of starbucks is the threats facing the company. Here is the starbucks swot analysis including competitors, profits. The company also maintains its focus on high ethical standards inside the organisation. Mar 05, 2019 the company has managed an optimum balance of licensed and owned stores globally. The company is the major dealer for the hth kitchenforum brand in the finnish market owning. These theories will show how the company is constantly being affected by different factors that have to be managed and taken into consideration when making strategic decisions and in order to be competitive. Competition is fierce in coffee business like most other businesses. One challenge, for a more cautious approach to market entry, was choosing an appropriate partner for a joint venture in india. Swot analysis of starbucks starbucks swot analysis.
Moreover, the report contains analyses of starbuckss business strategy, leadership and. Mba tutorials accounting, economics,finance, management, marketing,strategic management,human resource. Since the chains foundation in seattle in 1971, starbucks has been serving up hot and cold beverages primarily coffee as well as snacks. A swot analysis of starbucks coffee company starbucks corporation shows a strong global position to address weaknesses and opportunities. Over the past 46 years, starbucks has already grown into the largest coffeehouse company in the world from a local coffee store in seattle. By producing a swot analysis it allows us to analyse important factors that may. Specifically, swot is a basic, straightforward model that assesses what an organization can and cannot do as well as its potential opportunities and threats. Moving towards the swot analysis, it is a valuable system for surveying an organization and its surroundings, condensing the primary environmental issue as circumstances and risk confronting an organization palmer, a.
Sbux stock has soared more than 40% in the past 12 months, handily outperforming the. Mba tutorials mba tutorials accounting, economics,finance, management, marketing,strategic management,human resource. The company has managed an optimum balance of licensed and owned stores globally. Starbucks primarily operates and competes in the retail coffee and snacks store industry. Swot analysis of fy2010, the company had 4,424 licensed stores in the us market, and 3,601 licensed stores in the international markets asia pacific 2,141, europemiddle eastafrica 840, canada 274, mexico.
Apr 20, 2016 starbucks formally known as starbucks corporation is the worlds largest coffeehouse chain, operating over 20,000 locations worldwide 1. It is a strategic planning method used to evaluate the strengths, weaknesses, opportunities, and threats for any restaurant or any business. A short swot analysis justin hellman may 12, 2014 starbucks sbux shares have been mild laggards thus far in 2014, in what is shaping up to be a choppy year for the u. This swot analysis examines starbucks, a global roaster of coffee beans and retail coffee house chain with locations in countries all over the world. But the fact is, starbucks has an incredibly unique business model that sets it apart from competitors.
Starbucks social media analysis agenda introducing starbucks coffee starbucks facebook fanpage competitors of starbucks swot analysis insights recommendations for starbucks behindthestarbucksscene. Starbucks has continued to grow over the years, launching its via ready brew coffee in 2009 starbucks timeline, 2010. Starbucks corporation owns an extensive brand portfolio. Swot analysis helps the business to identify its strengths and weaknesses, as well as understanding of opportunity that can be availed and the threat that the company is facing. Mar 05, 2018 well, the starbucks swot analysis highlights the fundamental strength and weakness of this coffee major. Starbucks has high price points that maximize profit margins but reduce the affordability of its products. Starbucks retails a variety of drip brewed coffee, espressobased hot drinks, other hot and cold beverages, complementary food items, coffeerelated accessories and equipment, teas, ice cream, and items such as mugs, coffee beans, and music and other nonfood products through. These theories will show how the company is constantly being affected by different factors that have to be managed and taken into consideration when making strategic deci.
It also outlines the opportunities that enabled it to arrive at a current position. Starbucks swot analysis matrix step by step weighted swot. Analysis of the starbucks logo 1256 words bartleby. This article performs a swot analysis of the famous coffeehouse chain, starbucks. Most people attribute starbucks success to its delectable coffee beverages and other menu items. Starbucks swot analysis starbucks profit accounting scribd. Pdf the strategy of starbucks and its effectiveness on its. Mar 04, 2019 a swot analysis of starbucks corporation 2016 with infographics go to starbucks swot analysis 2018. Apart from these things, the company is also known as an ethical business. By saturating the market with several locations in one area, it is impossible for other companies to move in and compete. Swot analysis of starbucks corporation sbux the motley. Mar 27, 2019 strengths in the swot analysis of starbucks. Starbucks retails a variety of drip brewed coffee, espressobased hot drinks, other hot and cold beverages, complementary food items, coffeerelated accessories and equipment, teas, ice cream, and items such as mugs, coffee beans, and music and other non.
Starbucks swot 2020 swot analysis of starbucks business. Nov 12, 2014 starbucks swot analysis by david schwartz. Starbucks corporat ion remains a top leader in the. You can view samples of our professional work here. We have the weakness of having a higher price based on our brand name, and the threat of existing competition. Starbucks swot analysis executive analysis starbucks corporation, founded in 1971, is a retailer of specialty coffee. The company must innovate and use its strengths to address threats in the external business environment of the coffee and coffeehouse industries. By the end of march 2012, there were 263 starbucks stores in taiwan, and 104 of. Thus, a swot analysis was used to identify the required management strategies to improve the. Swot is an acronym for strengths, weaknesses, opportunities and threats related to organizations. It sources its cocoa ethically from selected suppliers. Swot analysis of starbucks, the worlds leading coffeehouse chain. The key themes in this analysis are related to the excessive dependence on a few products and hence, the need to diversify its product range.
Starbucks is one of the biggest coffeebrand, with lots of store in many countries. Chart line shows that starbucks operating profit was 15% in 2012, 0%. Starbucks swot analysis for 2017 november 1, 2016 the article was written by blair goldenberg, a financial analyst at i know first, and enrolled in a masters of finance at colorado state university. Slide 2 about starbucks name starbucks corporation logo industries served restaurants coffeehouses geographic areas served worldwide 23,043 coffeehouses in more than 68 countries headquarters seattle, washington, united states current ceo howard. We have the strength of the starbucks brand name and its loyalists, as well as the opportunity to enter a market that is growing yearly. Its closest competitor is mccafe with 5044 stores open in 2015. Extensive international supply chain starbucks is known to have an extensive. Swot analysis for starbucks strengths one of the biggest strengths that allow starbucks to create competitive advantages is starbucks strong brand influence.
The president starbucks coffee corporation was officially founded on january 1st, 1998, and is a joint venture among the us starbucks coffee international, the unipresident enterprise corp. It takes into account the various factors that led to its growth, the global trends and the future potential that can help the brand scale greater heights. Doc starbucks analisis swot caroline david academia. The micro environment can be analysed using a swot analysis and further completed with a macro environment study by doing a pest analysis. Setting the objective should be done after the swot analysis has been performed. Strengths, weaknesses, opportunities and threats a swot. Well, the starbucks swot analysis highlights the fundamental strength and weakness of this coffee major. Today, starbucks has more than 15,000 stores in 50 countries, and is known as the worlds premier roaster and retailer of specialty coffee starbucks heritage, 2010. It is a global coffee brand built upon a reputation for fine products and services. A table of starbucks swot analysis can be found in appendix 1, as explained by the economist 2009, this analysis is very subjective and can only provide a certain background to starbucks. Apr 16, 2019 starbucks has both means and experience to explore these opportunities. This internal strategic factor is a weakness because it limits the companys market share, especially in areas with relatively lower disposable incomes. Mar 25, 2012 starbucks is one of the biggest coffeebrand, with lots of store in many countries. Starbucks corporation report uploaded on april 2017 contains the application of the major analytical strategic frameworks in business studies such as swot, pestel, porters five forces, value chain analysis and mckinsey 7s model on starbucks.