SWOT’s are the basis on which strategic marketing plans are developed. Strengths and Opportunities are leverage items on which firms develop competitive advantages. Conversely, weaknesses and treats are problem areas that must be minimized if the firm is to achieve maximum success. In this blog I will be doing a SWOT for Starbucks. I will discuss its Strengths, Weaknesses, Opportunities and Threats.
- It is a global coffee brand.
- Serves specialty products and services.
- It has almost 9000 cafes in almost 40 countries.
- Starbucks always works to buy their coffee in a way that respects the people and places that produce it.
- Starbucks is committed to significantly reducing the waste their stores generate – especially when it comes to recycling
- Gives back to the community in many ways
- Established logo and developed brand
- Valued and motivated employees, good work environment
- Customer base loyalty
- Product is well liked by consumers
- Drive through services
- Starbucks is known for new product development and creativity. However, that may lead to a needed consistency hard to up hold.
- Starbucks is mostly popular in the United States of America.
- Ever increasing number of competitors
- Product pricing (expensive)
- Starbucks are very good at taking advantage of opportunties.
- New products and services that can be retailed in their cafes, such as Fair Trade products.
- Expansion into retail operations
- Technological advances
- New distribution channels such as delivery
- Emerging international markets
- Who knows if the market for coffee will grow and stay in favour with customers, or whether another type of beverage or leisure activity will replace coffee in the future?
- Increased competition from coffee shops and others (restaurants, street carts, supermarkets)
- Changes in the Economy
- Consumer trends toward more healthy ways and away from caffeine.