A Swot analysis for Starbucks can help reveal the company’s biggest strengths and weaknesses, all in an easy to understand delivery, providing more opportunities to grow in the process. Starbucks is identified as the premier roaster, marketer, and central retailer of specialty coffee products and similar drinks in the world. They operate over twenty thousand coffeehouses in more than sixty countries. They are currently the number one brand name in coffeehouse chains all over the world, with several competitors in the field.
Among the strengths displayed by this group is its incredibly sound financial records. It is currently valued at four billion dollars and is the number one brand in coffeehouses. It features powerful and reliable employee management, and the coffee beans prices are the most vital part in the company’s profits. The Starbucks experience is one of the largest selling points for the group, and is a major pull in people who have never experienced the brand name before.
The brand does have several weaknesses, one of the most prominent of which is the way it prices its goods. All of the products are relatively expensive, but they are unique in that they are experimental and offer an interesting experience for the consumer. There has been quite a bit of negative publicity surrounding Starbucks as well, especially regarding the way they treat their suppliers, and the fat that they have not been making many efforts to become a greener company.
In order to extend the supplier network, Starbucks does not grow its own coffee beans, and instead purchases them from a variety of suppliers all over the world. These include harvesting groups from South America, Arabia, and Africa. It has been able to play a vital role in offering expansion opportunities to a variety of emerging economies, helping improve their situation and lead to further developments that could be seen as largely beneficial for the country as a whole.
The group faces several unique threats as well. With the rising prices in coffee beans and dairy products, the group may potentially suffer in the long term when it comes to determining future prices and other factors that they may not have a lot of control over. The group may also experience a surge in their competition from local coffeehouses, especially those that offer the same basic products and ideas for a more affordable premium.