Starbucks SWOT

1.Strengths
a) Strong band correlation and public image
 Through favorite products and aggressive PR efforts by making coffee in a “premium”
way instead of a common commodity.
b) Global supply chain
 Sources from 30 countries across the globe, including countries in Central and South
America, Asia, and the Pacific Islands.
c) Financial is the advantage 
 Which has allowed Starbucks to explode in the number and density of stores.
d) Quality of services and employee treatments
 Known for treating its employees well, focusing on respect and well-being.
 Starbucks is one of the top-regarded companies. (Forbes)
e) Acquisitions 
 Providing additional revenue streams and offerings for other product classes in its
stores.
FIGURE 1. STARBUCKS’ OPERATING PROFIT MARGIN 2012-2019
FIGURE 2"EMPLOYEES FIRST"
2. Weakness
a) Price
 Its high price reduces affordability
for the consumers, especially in rural
area where most of Asian people
lives.
b) Unhealthy choices
 Many drinks offered by Starbucks are
high in calories and sugars, making
them dangerously unhealthy.
c) Lost focus on culture
differences between
nations.
 Starbucks tend to not adapt its menu
to appeal to the local customers.
d) Imitability of products.
 Starbucks doesn’t own the unique
product in the market. This makes
the imitability of products quite easy
for other companies
3. Opportunities
a) Expansion in developing markets 

 Global expansion to potential nations such as India, China and few regions of Africa can
give a great opportunity to the company due to its financial strength.

b) Updating with the delivering trends

 Currently, customers rely on Uber Eats, Baemin, Grab Food for its Starbucks coffee
delivery.
 Starbucks can start its own coffee delivery service for better customer experience.

c) Partnership 

 Starbucks can develop partnerships and alliances with major firms. They have
collaborated with Apple, Disney and PepsiCo and gained lots of benefits.

d) Online advertising

 By using social media like Twitter, the brand does a great job at showcasing their
followers by retweeting them and interacting with them.
 e) Introduce different types of coffee

 As the company is quite popular, introducing new products and holiday flavors would be
profitable and welcomed in the markets.
4.Threat
a) Lost market share 

 As mentioned above, Although gaining success across the world, Starbucks struggles to
beat local coffee chains and letting the locals takes over the market shares.
b) Global recession

 Consequences of COVID-19 pandemic raise the impact on most of the organizations

across the planet, including Starbucks.

 It has changed spending and buying habits for the general public in drastic ways.

 Lookdown is the main factor directly threaten Starbucks on the way to seize their
opportunities.