SWOT analysis for Starbuck Company. Analyze all categories of the SWOT.

SWOT analysis for Starbuck Company . Analyze all categories of the SWOT

INTRODUCTION

Starbucks is the world ‘s largest multinational HYPERLINK “http /en .wikipedia .org /wiki /List_of_coffeehouse_chains ” \o “List of coffeehouse chains ” chain of coffee shops . Founded in 1971 as a coffee bean retailer , then acquired in 1987 by HYPERLINK “http /en .wikipedia .org /wiki /Howard_Schultz ” \o “Howard Schultz Howard Schultz , it has acquired and built coffeehouses HYPERLINK “http /en .wikipedia .org /wiki /Starbucks ” \l “Globalization ” \o “Starbucks ” all over the world (Wikipedia , 2007 . Starbucks not only serves HYPERLINK “http /en .wikipedia .org /wiki /Drip_brew [banner_entry_middle]

” \o “Drip brew ” drip brewed coffee and HYPERLINK “http /en .wikipedia .org /wiki /Espresso ” \o “Espresso ” espresso beverages , but also tea and bottled beverages , pastries , and ready-to-eat sandwiches

SWOT ANALYSIS

Macro Threats Macro Opportunities

-Several activist groups maintain websites criticizing the company ‘s HYPERLINK “http /en .wikipedia .org /wiki /Fair_trade ” \o “Fair trade fair-trade policies , labor relations , and environmental impact , and hold it as a prime example of what they see as U .S . cultural and economic HYPERLINK “http /en .wikipedia .org /wiki /Imperialism ” \o “Imperialism ” imperialism

-Criticism on the effects (negative ) of caffeine to health such as hypertension , insomnia and other unfounded research studies

-The demand for coffee will increase in proportion to the increase in population since coffee drinking is a common practice all over the world

– There are still rooms for Starbucks to serve more than what it is currently serving , coffee , tea and ready to eat sandwhiches Industry Threats Industry Opportunities

-Competitors using the models of Starbucks are gaining grounds such as Second Cup . Starbucks ‘ closest competitor , HYPERLINK “http /www .secondcup .com ” \t “externalsite ” Second Cup , a Canadian franchisor with stores primarily in Canada , was less than one-third its size Second Cup owned Gloria Jeans , a franchisor of specialty coffees with stores located primarily in malls throughout the United States (Cleary , 1999

-Other competitors doing similar business like Coffee People , Coffee Station etc are also becoming popular

– The supply of fair trade Coffee that meets Starbucks standard is becoming scarce because of the costly fair trade certification

-There are still rooms for further expansion by providing more shops on other countries

– Starbucks can also reduce competition by buying competitors because they have now the economic capability to do that as oppose to small competitors

– Their recent joining in the music industry may add more name to Starbucks Company Weaknesses Company Strengths

– The price of Starbucks beverages are relatively more expensive than average price outside Starbucks

– The self service mode of Starbucks is a weakness in the sense that people come to Starbucks to relax . They should serve their beverages directly to the customer rather than calling the customer name to pick up the at the counter , – The corporate structure of Starbucks that is the continuing strengthening of the top management is one its major strength providing the name that it needs for differentiation

– Globalization of Starbucks has made it become more popular all… [banner_entry_footer]