In-Depth SWOT Analysis of Starbucks | Strengths Weakness Opportunities Threats

SWOT Analysis of Starbucks

Starbucks is a well-known coffee company headquartered in Seattle, WA. Starbucks and has 32,646 locations worldwide as of 2020, a number that had nearly doubled in the previous decade. There were more overseas stores than in the company’s home country of the United States – 15,328 versus 17318, respectively.

Starbucks sells coffees, teas, juice and pastries, whole and ground beans and markets its products exclusively to the upscale coffee house segment of the market. Starbucks is an innovator in the industry, constantly introducing new products and tastes.

The company pursues a unique business model in which it employs people to sell and improve its coffee. Starbucks provides its employees with a work environment that is collegial and respected. Starbucks offers many benefits, from free college tuition to medical coverage for part-time employees.

Starbucks has started a new brand of coffee called Americano, which includes espresso and steamed milk. The Americano has replaced the espresso drink as the main cup selection. Starbucks is famous for its cut glass white cups and its green logo with a yellow sunray in it.

They are very iconic and have built an empire based on this image. Starbucks has succeeded in creating an image that is recognized worldwide.

Starbucks has adopted a very effective marketing approach by creating an image of itself through the music used in their stores, their stores’ architecture, and even the manner they dress for customers. Starbucks also markets to people outside of its stores by doing account planning and creating advertising campaigns. Starbucks has a very effective marketing strategy.

Starbucks has had much success because it is a visionary company that focuses on the needs of customers and the health and welfare of its employees. Starbucks has created some exciting new brands such as frappuccinos.

Starbucks is able to access many markets and consumer groups because it is located in an environment that is very easy to access. Starbucks has grown rapidly by 55% in the last 5 years, which is much faster than other foodservice companies.

Global strategy and positioning – This is the overall look at Starbucks’ steps to reach out globally. Including setting their goals for the company, identifying threats they may face, competitors they may face, etc. The strengths mentioned are how widespread their presence is around the world and also how well they have set up their strategic target market. They also have a pretty good balance risk occurring in their business.

SWOT Analysis of Starbucks

SWOT ANALYSIS: Starbucks Strengths-

Starbucks is the highest quality coffee shop and offers the best coffee around; therefore, they have strong customer loyalty. Starbucks’ unique delivery of providing customers with a build-to-order experience makes it easy to catch on to what they are trying to do.

They also have the most effective marketing campaign created by targeting their customers at a personal level.

The company has over 25,000 stores in over 60 countries which makes it a well-known brand. The company also sells its products exclusively to the upscale coffee house segment of the market.

This segment of the market is usually very loyal to their specific brands. Therefore, it is a plus for Starbucks that they cater to this customer base.

Starbucks has a very diverse selection of coffee and pastries other than just what they sell in their stores. They sell their coffee worldwide under the brand Seattle’s Best and have also created their own brand of coffee, Tazo.

The company has also dealt with Pepsi, where they sell canned lattes and mochas in grocery stores.

The company has brought in a lot of revenue through strategic partnerships with other companies like Kraft, Danone, etc. Starbucks has also formed partnerships with celebrities and coffee lovers associated with the companies’ brands as sponsors or spokespersons for the company.

This strategy of going after the right markets and building a strong brand has worked in Starbucks’ favor.

The company’s strategy is to blend the best of old and new into one harmonious coffee-drinking experience. Starbucks’ unique approach to coffee has created an environment that makes customers feel at home and comfortable.

Starbucks’ vision statement is: “To inspire the human spirit – one person, one cup, and one neighborhood at a time.” One of their strategic goals for this year is to build new stores in key markets with the opportunity for accelerated growth in sales per store and market share gains.

One of Starbucks’ strategies in its growth is to open new stores in key markets with opportunities for accelerated growth in sales per store and market share gains.

SWOT ANALYSIS: Starbucks Weaknesses

Starbucks has weaknesses, such as the fact that there are fewer and fewer people going to coffee houses for their morning coffee. They have very high-quality beans, adding a lot of cost to the product. Starbucks competitors offer lower prices for their products and have healthier offerings as well.

High prices for their products and services. Perhaps because they have better ingredients than other companies, the company’s dominance makes it difficult for them to lower the prices out of fear of losing customers.

The global coffee market is being regulated by the government, adding more cost to the company. – The Starbucks stores in Canada are being threatened by a new coffee monopoly that offers $1.00 coffee and a wider range of products.

The company has many competitors who offer lower prices for their products and have healthier offerings as well. This new category of the company is very competitive, and they are all trying to reach as many people as possible.

Starbucks is expanding in Canada, which may create some problems since more regulations exist for independent coffee houses in that country. The United States government also regulates the coffee industry very heavily, adding more cost to the company.

SWOT ANALYSIS: Starbucks Opportunities

The opportunity that Starbucks has is by internationalizing their marketing. They have a lot of room to expand within the United States, but there are many countries that they can take advantage of.

There are many countries with emerging markets, and Starbucks would be able to do a lot of growth if they start focusing on these types of countries. The expansion in Canada will also help because it may allow them further to take over the market share in that country.

SWOT ANALYSIS: Starbucks Threats

Starbucks’ biggest threat right now is that many other competing coffee shops are catching on to the way Starbucks does business, and they are trying to catch up. There is also another new concept of an entirely different type of coffee shop that is intriguing customers.

Another threat is the increasing number of people being turned off by the quality of their products. Since there are many more people drinking coffee daily than there have been in past years, the market saturation has been causing a decline in the company’s sales.

There are fewer and fewer people going to coffee houses for their morning coffee. The company has very high-quality beans, adding a lot of cost to the product.

Starbucks is expanding in Canada, which may create some problems since more regulations exist for independent coffee houses in that country. The United States government also regulates the coffee industry very heavily, adding more cost to the company.

The expansion of stores in Canada is causing intense competition from other chains such as Second Cup, which have more variety and better prices.

Starbucks Competitors- Starbucks’ main competitors are McDonald’s, Dunkin Donuts, and Tim Hortons. These companies all offer their products at a lower price than Starbucks. Some of their products are also healthier than Starbucks’ selection of coffee and pastries.

Other competitors for the company also include Cold Stone Creamery, Krispy Kreme Doughnuts, Caribou Coffee, Peet’s Coffee & Tea, and Diedrich.

These companies also offer very good-tasting products in a very friendly environment and have the same prices for their products.

Starbucks Competitive Business Strategy

Starbucks is one of the most well-known coffee chains in the world. It has managed to reach a market that other coffee chains have failed to reach because they did not have the vision and aggressive management style that Starbucks has had since its name was created.

Other companies include Tim Hortons, which uses a different approach to selling both Americano and espresso drinks. Second Cup, a coffee chain targeting those who do not want to drive out to Starbucks. Coffee Culture, which has many locations in Canada, is owned by the same management team as Tim Hortons.

Starbucks Expansion

Competitors such as Tim Hortons, Second Cup, and Coffee Culture are gaining significant market share because of Starbucks’ place in the North American market.

In an environment where there are many new competitors to Starbucks in Canada, it seems very hard for them to keep up, and this could be quite detrimental to their future. The Canadian coffee market is very competitive, and Starbucks is seen as “the” coffee in Canada.

Canada regulations have greatly affected Starbucks’ growth in Canada. For a while, they were given a special license to supply their product for use by the government. This allowed them to sell their product for a lower price but also had many issues with it.

They did not have enough control over the coffee themselves, so they could not make any changes that would benefit its taste or freshness. They could not make any decisions that would affect their company. In addition to that, they had to supply the government’s coffee for free, which was quite costly to Starbucks.

Their main focus is on taking care of their employees and ensuring they are well taken care of. They do this by offering benefits such as healthcare, dental insurance, tuition reimbursement, and stock options. This strategy has allowed them to grow over the years because they have had loyal employees who have been with them since the early days of its creation. Their goal is to provide great service and to have a desirable coffee drink.

In order to grow, Starbucks has taken its own approach. They have tried many strategies such as advertising in different mediums like television, magazines, and newspapers, and even via the internet. With all of these methods, they have expanded their customer base but not as much as they would like.

It is also hard for them to keep up with competition because there are so many new chains during the last decade. Although many new chains have appeared, Starbucks seems to be able to continue expanding in the Canadian coffee market.

The methods used by Starbucks are the same as those used by other companies. They use advertising to get their name out there and keep it out there.

They also use different mediums of advertising, such as television, radio, and magazines. One of their main strategies is to advertise through various entrepreneurial channels such as the internet and newspapers.

Starbucks Differentiation-

Starbucks focuses on giving customers the best taste and experience while also offering the friendliest service. Starbucks has a long history of making its product high quality and has also offered many different products over the years, making it more competitive.

Starbucks has partnered with many other companies to get better products for their customers and has made it easier for their customers to find them.

Starbucks Target Market-

Starbucks targets upscale customers who want to have good taste, experience and deal with their friendly employees.

The company also offers its products at a very high cost for customers. Starbucks also has its special coffee shops for the coffee houses where customers can escape from the hustle and bustle of everyday life. Starbucks has become the king in this segment of the market.

Starbucks Trademark-

The most famous Starbucks coffee of all is the caramel macchiato. The name and recipe of this coffee drink have also been trademarked by the company. The most popular drinks from Starbucks are lattes, espresso drinks, mochas, frappuccinos, and cappuccinos.

Starbucks Advertising-

Starbucks has an exceptional advertising plan that has helped them reach out to their customers and build their brand image. The company’s main adverts are through television commercials, radio commercials, and billboards.

Starbucks is also known for its other advertising techniques. They have used the “Freakling Bros,” a funny and clever name that represents the company. The company has also introduced various marketing campaigns to get its message across.

They have introduced a Christmas campaign and a new campaign for their New York store. They have introduced such campaigns to get in touch with their customers in order to build their brand image and market themselves well over the year.

Conclusion-

Starbucks has grown tremendously in the past seven years. The company has gone through all sorts of marketing techniques and has successfully taken people along with it.

Starbucks has become a very good brand by introducing various advertising techniques to lure the customers and build their image. If you want to have a good cup of coffee, then get your favorite drink from Starbucks coffee shops.

Here is a summary of Strengths &Weaknesses of Starbucks

Strength – The company has a great history of delivering quality coffee around the world. It is also successful in recruiting new employees and keeping them coming back.

Weakness – Starbucks has been known to hire people who act as ambassadors for their company but show no responsibility or loyalty to the establishment. These types of employees are known to get a paycheck from the company and continue with their daily lives with no obligation to move up or grow within the company, which can result in a lack of motivation for other staff members and customers.

While it’s known that Starbucks only takes the finest quality of coffee beans, its reputation has been compromised with a recent lawsuit against them for selling coffee that was not as fresh as it was advertised.

External Environment – The market for coffee in America is highly competitive. For every Starbucks, other coffee shops offer similar services and a great environment in which to drink their beverages. This competition has caused Starbucks to attempt to enter new markets such as China and India, both of which have grown exponentially in recent years.

Internal Environment – Coffee shops such as Starbucks have been growing rapidly within the American market but have also experienced a decrease in sales.