Swot Analysis Of Starbucks

Opportunities and Threats SWOT Analysis Starbucks is known for the extraordinary coffee that they have provided over decades. Although the coffee is great and the business is successful, other aspects can put a treat on the company just as any other business. When it comes to the downfalls “higher commodity cost, intense competition, and legal proceedings can have an adverse impact over the business” (Lemus, E.). Per Lemus in the article “Starbucks Corporation: Leading Innovation in the 21st Century” Starbucks current SWOT analysis is as follows:

Internal strengths include:

• Established 40 years in the market

• Adequate financial sustainability

• Company’s culture contribution

• Ethical for best business practice

• Experienced in the market

However, it is very noticeable how good Starbucks handles these situations. They continue to add to their strengths, fixing their weaknesses, going for all their opportunities, and decreasing the threats that they are faced with.

Starbucks Organizational Future Starbucks are planning to add to their organizations growth, by continuing to make Starbucks a top of the lie coffee distributor and business. Some of the ways that Starbucks plan to continue to grow their organization in the future is by growing the number of stores, elevating the coffee experience, creating new customer occasion, and driving at home coffee share and occasions. By growing the number of stores Starbucks plans to create and open “express stores which essentially function as walk-thrus in New York, Boston, and Seattle” (Speculations, G). By doing this the company’s plans are “aimed at increasing the company’s store penetration” (Speculations, G). After the growing plan Starbucks is sure to see a 5% minimum in growth when compared to the U.S. (Speculations, G). The graph below shows the total change in the franchised store, the graph is from the article “Let’s Look at Starbucks Growth

It is safe to say that Starbucks should continue to grow globally. Although it has been proven that they are already doing great globally with their 22,519 store open to date. It will still be good for the company to expand due to their successful growth. Starbucks strengths are good and already leveraged, however their weaknesses could become a risk in the future. Two of the risk that they should watch for is the high price of coffee beans in the market. Because of this it is driving up the price of their product which is also a weakness that they