Starbucks Strengths

1. Starbucks Corporation is the most popular and strongest brand in the food and beverage
industry. Its size, volume, and the number of loyal customers have kept growing over time.
2. With a market capitalization of $81 billion, Starbucks has a stable financial position in the
market. It increased its number of stores from 1,886 to 29,324 between 1998 and 2018.
3. Starbucks is known to have an extensive global network of suppliers. Starbucks sources its
coffee beans from three coffee producing regions, Latin-America, Africa, and Asia-Pacific.
4. Moderate diversification – Starbucks has also diversified its business operations by
introducing innovative merchandises and food items. One such example is the addition of ice
cubes made of Coffee which results in a stronger Coffee flavor.
5. Due to its premium blends and delicious coffees, Starbucks has extended globally. It offers
excellent quality and consistently standardized products in all the locations.
6. Starbucks reinvests its profits in expanding its business in different locations. Its efficient
operations and well-planned strategic decisions have produced many advantages for the
company.
7. Starbucks treats its employees very well which eventually translates into happier employees
serving customers well. Starbucks has been consistently listed as one of the Fortune’s Top 100
Places to Work for.

Starbucks Weaknesses

1. For many middle tiers and working consumers, Starbucks’ offerings are more costly than
McDonald’s and other coffee outlets. Its high prices reduce affordability for the consumers.
2. Starbucks doesn’t own the most unique products in the market. This makes the imitability of
products quite easy for other companies. Other coffee shops and food chains like McDonalds
McCafe and Dunkin Donuts offer almost the same products.
3. Some of its product offerings are not aligned with the cultural standards of other markets. For
example, in some areas, its crafted beverages do not associate with the consumer preferences.
4. Due to its tax avoidance in the UK, it faced several controversies and criticisms. Reuters’
investigation found out that it didn’t pay tax on its £1.3 billion of sales in three years prior to
2012.
5. Many social and environmental activists criticized the company for their unethical procurement
practices. They claimed that it procures coffee beans from impoverished third world farmers. It
has also been accused of violating “Fair Coffee Trade” principles.
6. Over the years Starbucks has recalled a lot of in-demand products. This can negatively
affect the brand image of the company and lead to the loss of customer base.

Starbucks Opportunities

1. Starbucks has coffeehouses mainly in the US. Global expansion in a few areas like India, China
and few regions of Africa can give a great opportunity to the company.
2. It can further diversify its business operations to improve overall revenue growth opportunities.
Besides, developing products as per the customer preferences in the specific target market is
also a profitable opportunity.
3. As the company is quite popular, introducing new products and holiday flavors (Peppermint
Mocha, Eggnog Latte, Gingerbread Loaf) under its name would be profitable and welcomed in
the markets.
4. Co-branding always benefits. Starbucks has the opportunity to develop partnerships and
alliances with major firms. This would strengthen its presence and market share.

Starbucks Threats

1. Many coffeehouses offer products at an affordable rate. This can threaten the future’s stability of
Starbucks which offers higher prices.
2. Aggressive competition with multinational companies like Dunkin Donuts and McDonald’s can
also pose a threat to its market position.
3. Products can be imitated by both new and old rivals.
4. There are many sociocultural threats for Starbucks. These sociocultural movements support
small independent and local coffeehouse and oppose the expansion of large multinational
chains.
5. A California judge ruled Starbucks and other companies in March 2018 to provide warning
labels on all their coffee products. This was about preventing a violation from chemical use that
may cause cancer.
6. Recently, two African-American men were arrested at Starbucks that caused quite a
controversy on social media against Starbucks. Starbucks employees refused them to use the
restroom because they didn’t purchase anything. The CEO Kevin Johnson issued an apology to
both men eventually.

Reference:

https://bstrategyhub.com/swot-analysis-of-starbucks-starbucks-swot/