Question

Starbucks SWOT Analysis

1. Strengths:

2. Weaknesses:

3. Opportunities:

4. Threats

Answer 1

Strengths:

• Starbucks' biggest strength is its solid financial results, which has led the company to hold the number one spot among the world's coffee and beverage retailers.
• Starbucks has been one of the most recognized brands and having a strong brand image across the world.
• It has top-of-the-mind recall among customers, and due to its brand value, which symbolizes excellence and reasonable quality, the company has a remarkable and dominating position on the coffee and beverage market worldwide.

Weaknesses:

• The over-dependency on its primary and crucial supply, that is the coffee beans and, as a determinant of its profitability, due to which it is heavily dependent on the price of coffee beans. And because of this, Starbucks is excessively price-sensitive to coffee bean price volatility and hence, therefore, consider diversifying its product range to reduce the risk associated with such dependence.
• It markets its products in the high to the mid-level market segment that places its products beyond the budgets of many working customers who tend to visit McDonald's and other outlets instead of Starbucks for their coffee.

Opportunities:

• The company has the potential to expand its distribution network and increase the variety of suppliers it originates from with a purpose to diversify its supply sources and not to be at the mercy of whimsical suppliers.
• The company has a big opportunity to await it in terms of its growth in emerging markets like India and China.
• It has the potential to broaden its product range and take on the broad spectrum of food and beverage competitors such as McDonald's and Burger King.

Threats:

• Rising coffee bean price is one of the biggest threats.
• The current situation in the world due to the Coronavirus Pandemic has made the entire world and business to stillstand, which in long term will affect the Starbucks business too.