Starbucks Swot Analysis

SWOT Analysis for Starbucks

Strengths: Starbucks has several strengths. The largest would have to be its strong market position. With more than 21,000 locations in 65 countries they are one of the most recognized coffeehouse brands in the world. Starbucks strives to provide the highest quality products throughout the world. They have many product choices that customers love. Most Starbuck locations are in high traffic and highly visible areas such as corner locations, schools, airports, and large retail centers, making it easy and convenient for people to shop there. Their stores are trendy and provide free wi-fi, great customer service, and warm environmentally friendly atmosphere. Starbucks strong market position and brand recognition allows Starbucks to have a competitive advantage in further expanding into international markets and gain higher growth. Last year, it had its best year in its 42-year history. It ended 2013 with a 34% increase in profit and 13% increase revenue from the prior year.

Weaknesses:

Starbucks major weakness would have to be its expensive product prices in comparison to other coffee shops. For example, in California a person could go to McDonalds and pay just a little over $2 for a medium ice coffee. A similar to McDonalds medium ice coffee would cost a person close to $5 at Starbucks. That’s more than double! Another weakness could possibly be that most Starbuck locations are in the US. About 11,000 out of around 21,000 locations exist in the US. This means there is an over-dependence in the US market, and if new companies were to enter the market strongly, Starbucks could possibly get into trouble.

Opportunities:

There are many opportunities for Starbucks as there is for most companies. Starbucks could possibly expand their menu from having just coffee and snack products. They could offer other types of beverages such as juices, and more teas. People are now going with healthier snack choices. Therefore, Starbucks can...