SWOT Analysis Starbucks
SWOT Analysis Starbucks
S W
• Strong brand value in coffee segment valued at
Starbucks and the smaller coffee chains in the
$4 billion
minds of customers
• Products if the highest quality
• Self cannibalization through over crowding
• Largest coffee chain in the world
• Some negative publicity that Starbucks prefers
Strentghs • Good employee management Weakness money over customers satisfaction
• Location and aesthetic appeal of its store
O T
international market
• Expanding product mix and offerings • Increased competition
• Expansion of retail operations • Price volatility in the global coffee market
• New distribution channels • Saturated markets in the developed economics
Opportunity • Technological advances Threats
• Brand extension
Five Forces Suppliers power
• Low
• Individual suppliers of coffee bean
• Paper and Plastic products
• Technological innovations
Buyers power
Barriers to entry
• High/moderate Intensity of
• rivalry
Independent specially
• Small scale speciality • Donut and bagel chains • Buyers power is High
• Entrance into this market is • Coffee chain
low • Consumer have many options
for coffee purchase
• Starbucks dominates the
• Customer base is evolving
market
Threat of substitutes
• High
• Other caffeinated
• Shops similar to Starbucks but also offering food drinks
• Fast food restaurants offering specialty coffee