SWOT ANALYSIS

S
STRENGTHS
- One of Starbucks' strengths is strong a public image and brand recognition. It is one of the

top five brands in the United States according to Fortune. Its heavy customer loyalty and

diverse marketing efforts keeps Starbucks as a top player in the food and beverage industry.

Starbucks owns its own products which adds to the brand recognition and loyalty.

- Its consumer demographic is continuing to grow and expand to achieve new scale faster and

more efficiently. For instance, Starbucks is reaching into the younger demographic and hitting a

higher popularity amongst generation Z.

- Another strength is partnering with Target which allows another location for consumers. It

adds convenience by allowing Target shoppers to have an easy stop to get a beverage before

or after shopping since both brands have similar values and target audiences.

W
WEAKNESSES
-Starbucks has higher prices compared to its competitors. It is difficult to lower prices because

the coffee bean price is continuing to increase. Also, it has to maintain its upscale brand image.

-Its main source of revenue is the beverage products which can be seen as common and not

unique. This could allow its competitors to create quirky drinks to attract its customers.

-Many drinks at Starbucks have ingredients that can be seen as unhealthy. Due to having high

sugars, calories, and artificial flavors, some might consider other healthier alternatives.

-In the past, Starbucks has been claimed to use unethical procurement practices of coffee

beans from third world farmers. Also, it has been claimed to violate the "Fair Coffee Trade"

policy that was enacted to prevent unethical practices. These claims go directly against

Starbucks' position as a sustainable and ethical company.

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OPPORTUNITIES
- One opportunity for Starbucks would be to create its own coffee delivery service. Starbucks

currently partners with GrubHub and UberEats, but creating its own service can increase brand

awareness. Also, revenue can increase by not having to pay fees for other delivery companies

and being able to retain all the profits from its own service.

-Starbucks has the opportunity to partner with other companies. Due to the success of its

partnership with Target, Starbucks can benefit from increased partnerships to reach its desired

business and marketing objectives.

-It could introduce different flavors of the world (since it is a global brand) to the United States

which can attract new customers. Starbucks has a unique position as being a brand across the

globe. It can incorporate global flavors into national stores to have a unique product offering.

T
THREATS
- One threat to Starbucks is the presence of local coffee houses. These houses promote a "local

business" atmosphere by creating a more personalized experience with its customers.

- Starbucks faces another threat due to imitation of its beverages. Consumers have the ability

to buy all the products to make a Starbucks beverage at home for a much lower price.

- Starbucks indoor locations were suffering from the most recent COVID-19 global pandemic.

Starbucks is known for being the "third place" where people are able to go to study, grab a

coffee, or relax. Due to COVID-19, Starbucks had to close the indoor dining rooms which led to

a decline in revenue. Currently, indoor dining rooms have resumed but at limited capacity.