SWOT Analysis for Starbucks Coffee

SWOT-Analysis-For-StarbucksThe Starbucks Corporation is an American coffee company and coffeehouse chain, founded in 1971. Three friends, Jerry Baldwin, Zev Siegl, and Gordon Bowker, who all had a passion for fresh coffee, opened a small shop and began selling freshroasted, gourmet coffee beans and brewing and roasting accessories. The company did well, but things began to change in the 80s. Below is a SWOT analysis for Starbucks.

Strengths:

  • Famous brand which is associated with high quality
  • People like Starbucks atmosphere
  • Starbucks has many outlets and often is in high class locations
  • Well trained and treated employees

Weaknesses:

  • High price products
  • Coffee quality is not as good as reputation
  • Aggressive expansion
  • Unhealthy products

Opportunities:

  • Launching new products/product extension e.g. tea, healthy, premium, co-branding
  • Capturing new markets (retailing) and new consumer groups
  • Selling more whole coffee beans and equipment
  • Develop in non high street areas

Threats:

  • Growing competition within the Coffee
  • Outlet industry and new competition from
  • Fast Food restaurants
  • Lack of ownership of coffee farms
  • Global crisis/financial resources

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