The SWOT Analysis Of Starbucks

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Starbucks Corporation was founded in Seattle, Washington in 1971 by Howard Schultz. It is internationally renowned for its premium coffee. It also provides other cafe delicacies such as tea, sandwiches, and snacks, as well as accessory products such as specialty mugs, coffee beans, and gift sets. These trademarked products can also be purchased in stores besides Starbucks.

In 2009, the industry for coffee and snack shops lost a decade-long streak of consistent growth. The economic recession caused consumers to shift from luxury expenditures to cheaper items in order to save money. In addition, Starbucks failed at a store expansion strategy that proved to be unsustainable and almost led to its downfall. Since then, the industry has picked back …show more content…

Legal: Companies in the coffee and snack shop industry must deal with legal guidelines when sourcing their products both nationally and internationally. For example, although America does not have laws to regulate genetically modified organisms, there are international laws that ban GMOs altogether. When a corporation like Starbucks is limited to only operate within its country, it places a ceiling on potential profit. Starbucks handled this challenge by diversifying their product options to include more organic choices.

(ii) SWOT Analysis:

STRENGTHS:
• Dominance of Industry as a Recognized Brand
Starbucks represents the largest portion of the coffee shop market at 39.8%. There are currently 13,930 stores in the US and 13,409 stores globally. As of 2017, it is ranked 60th in best global brands and marked as a top grower. Following the recession, the brand value has seen a steady annual increase and stands at $8.7 million. The corporation has evidently been successful in spreading its brand and ultimately reaching economies of scale.

• Loyal Customers
Starbucks offers a wide variety of product options catering to all age groups, which has created a dedicated fan base. To attract even more customers, Starbucks has implemented a loyalty card with which customers start at a base level and earn ranks as they make more purchases; higher ranked members earn more perks. This encourages customers to visit stores more frequently, thus bringing in more revenue.

• Placement of

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