Starbucks is a multinational American coffee chain. The company is selling different coffee products around the globe. Due to high-quality products for customers, the revenue of the company has been streamlined for 22. 387 billion in 2017 (Dulaney & Iosebashvili, 2017). Strengths, weakness, opportunities, and threats have been derived, and the elaboration is as under
SWOT Analysis-Starbucks
Strengths of Starbucks
The biggest strength of the company is a huge brand or product portfolio. The company, due to competitive positioning, has streamlined high-quality coffee products, which enables high sales growth. Also, the financial condition of the company is also a big strength, as this company depicted the net revenues (5.7 billion) in 2016. There is a 16% growth in revenue, which seems remarkable achievement by Starbucks. High brand image and customer range are also some key strengths of this company (News.starbucks.com, 2016).
Weakness of Starbucks
The big weakness of the company is its high or premium price. A big range of people has never experienced Starbucks coffee, which makes it way behind as compared to competitors. Another weakness is the lack of cultural integration in different countries. The company expands in different countries, but fails to encompass emotional and sentimental attachments to people, and ultimately, the company faces the decline in the market share (Dulaney & Iosebashvili, 2017).
Opportunities for Starbucks
Due to good financial capital, the company contains the big opportunity to expand the business in the health market. Moreover, in Asia, targeting some local coffee giants is a good opportunity, which can be availed. Furthermore, due to the development of new product line in the organic food and beverage industry, the company can increase its market share for a long run (News.starbucks.com, 2016).
Threats for Starbucks
Dunkin Donuts and McDonald are two big competitors, and these are big threats due to differentiation process. Similarly, in the European market, Cosa Coffee is also coming up with some substitutes in low prices for customers. Furthermore, the international supply chain disruptions are impairing the company’s operations, which is a huge threat to the international business sustainability. However, there is a massive rise in the US dollar exchange rate, and it is a huge threat to the revenue of the company (Dulaney & Iosebashvili, 2017).
Figure: SWOT Analysis-Starbucks
References
Dulaney, C., & Iosebashvili, I. (2017, November 9). A Starbucks Coffee Costs What? Retrieved from https://www.wsj.com/articles/whats-a-dollar-worth-1510234254
News.starbucks.com. (2016, November 3). Starbucks Reports Record Q4 and Record FY16 Results. Retrieved from https://news.starbucks.com/news/q4-fy16-earnings
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