OPPapers.com

Starbucks Swot Analysis

Starbucks' Strategic Planning Using SWOTT Analysis
"Mirror, mirror, on the wall, who's the fairest of them all?" – The Queen in Snow White. Beauty is only skin deep, companies must also look within to secure longevity. Before a company can successfully bring a mission statement and vision to fruition, they must take a good hard look into the mirror. A company must reflect upon internal strengths and weaknesses, external opportunities and threats, and consider the trends associated with each (SWOT analysis). The fundamental process of strategic planning is through the encompassment of SWOT analysis. Taking a bite from the poisonous apple will be inevitable if a company fails to self-evaluate and strategically plan for the future. Starbucks Coffee Company is a paradigm of effective strategic planning through SWOT analysis. Astute analysis coupled with the ability to act swiftly has catapulted them to the position as the number one gourmet coffee retailer. They continue to document increased revenue annually and maintain a majority share of the gourmet coffee market.
Strengths Weaknesses
• Product diversification
• Customer loyalty
• High visibility • Self-cannibalization
• Price
• US market reliance
• Problems in some international operations
Opportunities Threats
• Expansion into retail operations
• Technological advances
• Expand globally
• Brand extension
• Product distribution • Competition
• Prices of coffee beans and dairy
• Economy
• Political tensions in global markets
Figure 1. SWOT Analysis for Starbucks Corporation
Strengths
Starbucks serves up strong drinks and remains strong as the leader in the coffee industry market through product diversification, customer loyalty, and high visibility. Starbucks caters to the addictions and satisfies the needs of socioeconomic groups attempting to beat the daily grind. Got Milk? Starbuck does, and they put a spin on the famous marketing campaign to add calcium to the diet; they...