SWOT Analysis of Starbucks

Answer :


The present study is based on SWOT analysis of Starbucks organization. It will help in gain an understanding towards the organization strategic planning process and its link with the business objectives. Starbucks has opened its business in 1971 where by opening first shop, it has gained a good success and has obtained a high market share. In the present time, organization is operating 6793 stores (Dalavagas, 2016). Motto of the company has established the firm as the premier supplier of the finest coffee in the world by maintaining inflexible principle of growth. In this context, SWOT analysis will give a deeper insight about how Starbucks has achieved the following objective.

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SWOT analysis of Starbucks

Strengths: In terms of quality, ethically and profitability, Starbucks have established its business as a first-class coffeehouse chain in worldwide as compare to other fast food chains. The products offers by the company are excellent in quality and environmental friendly. Due to this reason, firm charge high prices from the customers where most of them ready to pay. Along with this, company has a clear reinvestment strategy by which firm has expanded its business at various locations. The cited corporation has a well planned growth strategy and it has seemed to be good for the business. Further, Starbucks has treated very well to its hundreds of thousands of employees (Orta, von Feigenblatt, Lemus and Rivero, 2015).

Weaknesses: High price point can be considered as a major weakness of Starbucks. The higher prices tags on the products have discouraged many of the customers who want to consume Starbucks products on their daily lives. Cited company has also known for its pumpkin spice lattes, frappucinos and big chocolate chip cookies products. These are not that much unique because many of the other coffee shops have offered similar kinds of food items to its customers (Bush, 2016).

Opportunities: Starbucks has already run its business in the US but still there are many of the regions where company can easily earn handsome amount of profit such as Central Europe, India and Africa. In addition to this, firm can make collaboration with the supermarkets so that consumers can easily access the products of Starbucks. This will be a great way to boost up the brand value of the business in the marketplace. Along with this, there is an opportunity in front of Starbucks to tie up with the other co-brands and companies where Starbucks products will offer as a complementary with other food items (Dalavagas, 2016).

Threats: There are two major competitors of Starbucks: Dunkin Donuts and McDonald’s. These companies are directly competing with their products which are similar to Starbucks offer eatable items. Rival firms have offered the food items at lowest rate as compare to the cited coffee chain organization. Along with this, firm has deal in three specific markets: coffees, convenient snacks and teas. If in the future, consumers shift from these products then it will create a big issue for Starbucks to struggle in the marketplace.

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From the above SWOT analysis of Starbucks, it has been clear that strengths of the company have helped the business to maintain competitive edge. While opportunities have assisted the firm to globally expand the business. By using both, company has able to minimize the weaknesses and deal with the threats.


  • Bush, T., 2016. SWOT Analysis of Starbucks, the World’s Leading Coffeehouse Chain. [Online]. Available through: <>. [Accessed on 31th January 2017].
  • Dalavagas, I., 2016. SWOT Analysis: Starbucks Corp. [Online]. Available through: <>. [Accessed on 31th January 2017].
  • Orta, M., von Feigenblatt, O.F., Lemus, E. and Rivero, O., 2015. Starbucks Corporation: Leading Innovation in the 21 st Century.Journal of Alternative Perspectives in the Social Sciences.7(1).
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