SWOT Analysis of

Starbucks
Name – Priti Kumari
Subject – Advertising Lab
Semester – 4th , 1st shift
Enrollment no. - 03220602420
An Overview of Starbucks

• Coffeehouse chain Starbucks (formerly Starbucks Corporation) operates over 20,000

stores worldwide.
• Starbucks is the world’s biggest American coffeehouse chain, with 31,256 locations
globally. It was formed in 1971 in Seattle, Washington.
• It became more than a coffeehouse, a third space between work and home, thanks to the
energizing vision of Howard Schultz (current Executive Chairman). Starbucks’ current
CEO is Kevin Johnson.
• Starbucks has been selling hot and cold beverages (mainly coffee) and food since its
inception in Seattle in 1971. 
• This multinational corporation has lately expanded into selling branded items such as
bagged coffee beans, coffee makers, mugs, and other presents.
Company Starbucks Corporation
Year founded March 31, 1971
Industries Coffee House
Founder Gordon Bowker, Jerry Baldwin, Zev Siegl
CEO Kevin Johnson
Headquarter Seattle, Washington, United States
Type Public
Area served Worldwide
Products Coffee beverages, smoothies, tea, baked goods, sandwiches
Revenue  US $26.50 billion (2019)
Main Competitors Caribou Coffee, Costa Coffee, Dunkin’ Brands Group, Inc.,
Green Mountain Coffee Roasters, Luckin Coffee, McDonald’s,
Nestlé S.A., etc.
Vision and Mission of Starbucks

Starbucks highlights its mission as “to inspire and nurture the human spirit –
one person, one cup and one neighborhood at a time.” And its vision is to
“treat people like family, and they will be loyal and give their all.”
Starbucks SWOT Analysis Overview Template
• Great and Skilled

S
Workforce
• Great Reward
System
• Gender Sensitive
Initiatives

• Irresponsible

W
Financial Handlings
• High Rate for Drinks
• Generalized Product
Standards

• Expansion of the

O Market
• Latest Coffee
Drink Trends

T
• Global Pandemic
• Easily Doable
Recipes
 Strengths of Starbucks in SWOT Analysis

• Starbucks has one of the • Starbucks has an excellent • Starbucks is well known
Workforce

Gender Sensitive
Initiatives
Great Reward System
Great and Skilled

most skilled workforces out incentive program that keeps for gender sensitive
there in the cafe sector. They consumers coming back for initiatives and their support
are known for treating their more. You receive three towards LGBTQA+
employees nicely. points for every dollar you community. This includes their
spend ($1 Equals three employees being respectful
• Starbucks pays its staff well,
towards the community
which leads to happier stars). 
members.
employees who provide • You get a free drink when • Starbucks has implemented
excellent service to you gather 150 stars (150 gender-neutral toilets to
consumers. Starbucks has stars = 1 free drink). safeguard the LGBTQ
continuously been named Furthermore, reward community from harassment.
one of Fortune’s Top 100 members enjoy the The bill responds to laws that
Companies to Work For. convenience of mobile discriminate against
payment, pre-ordering, transgender individuals, in
complimentary birthday particular under anti-LGBTQ
beverages, and so on. legislation.
Weaknesses of Starbucks in SWOT Analysis

The Issue With European Taxes

Now we all love and adore Starbucks. Of course, one would think a company that is trusted as much as Starbucks
won’t do anything against the law, right? Well, one would be very wrong. Because, as you are reading this, many
European government officials have claimed that Starbucks are evading taxes. Later the authorities have
addressed this matter and resolved it with the government. But still, it is not a good look for the brand. It is a
given that this issue will remain as a blimp in Starbucks’ otherwise perfect record.
High Rate for Drinks
Starbucks doesn’t exactly have a lot of compassion for the middle or lower class people in our society.
Because their price range of their drinks makes it hard for these people to afford their drinks. It also means
that they are missing out on a lot of potential customers as more than 50 percent of the society comprises
them. So, this is a huge disadvantage for them as their opponents continue to target this demographic and
benefit from it.
Generalized Product Standards
Many of the Starbucks drinks are known to have properties that are not that different from other shops if we are
going to be truthful. Because of this, many of their customers are turning towards other alternatives that provide
similar drinks that, according to them, taste far better and are cheaper. Many drinks are not even preferred by the
mass media. And the quality is not at par with their prices. This makes for a huge weakness. And as many people
are becoming aware of their spending habits, their customers are steadily decreasing.
Opportunities for Starbucks in SWOT Analysis
The opportunities in this Starbucks SWOT
analysis are elements and features of the
macro environment that Starbucks can use
to consolidate current market roles or use
for similar expansion. Opportunities can
arise from various factors, such as
adjustments to buyer preferences,
technological innovations, political
functions and coverage adjustments. ,
Financial growth and disposable income
growth of buyers.
• As they have many countries unexplored they can
easily expand their market. This will turn them
into a cafe giant. This will help them turn in a
Expansion of
great profit. They can also try to make some drinks
the Market
special to their specific outlets. This will also help
them find their signature drink. This could also
turn out to be one of the media exposure strategies.
• Although Starbucks is at the vanguard of modern-
day espresso generation, there’s nevertheless room
for expansion. From fine foam generation to snap-
Latest Coffee
chilling, returned to black, and RSI-lowering
Drink Trends
gizmos, there are infinite opportunities supplied
through the present-day espresso traits and
technologies.
Threats for Starbucks in SWOT Analysis
Threats can emerge from various factors
comparable to – political trends &
coverage changes, money growth,
technological innovations, slump in
shopper disposable income, and
adjustments in client preferences.
Global Pandemic
• Starbucks has quickly closed anticipated 2000 shops in China
because of the outbreak of coronavirus. Considering Starbucks
has 4123 shops in China, and nearly 1/2 of the shops are closed,
it’ll have a bad effect on their financials in 2020.
Easily Doable Recipes
• Many preferred menu drinks may be replicated for an awful lot
less cash than those discovered in regular diners. Let’s say
Starbucks wishes to dominate the “basic” espresso market. If
this is the case, the enterprise needs to triumph over the false
impression that simplicity makes replication difficult, both
through emphasizing the authentic beans or the brewing process.
Their coffee retail income in the United States is $5.18 billion.
Conclusion and Recommendations for
Starbucks

Here are a few recommendations for Starbucks for their further improvement:

They can definitely work more on their money management skills.

Getting their own shop space instead of renting could be a great option for them.
They should most definitely get more equipment in their shops.
They try to cut prices off of some of their items which will help them oh so
obviously.
They easily use creativity in their campaigns across the market.
They can also try to convince people to be a member of their community.
Starbucks is an intimidating presence in the beverage sector and it likes to maintain
its presence. This makes them more cautious as to not lose their footing. This is
where the SWOT analysis comes in. It helps the corporation to make better choices
regarding their financial responsibilities and rival companies. This also helps them
to analyze and rethink their previous and current strategies and all of their ins and
outs.

So, it can be summarized that Starbucks has the potential to be the next big thing in
the beverage industry if it can only tweak some of its shortcomings.

THANK YOU