SWOT Analysis: Starbucks Corporation
For the purposes of the current assignment of conducting SWOT analysis for one of the popular companies Starbucks Corporation was chosen. Starbucks is one of the most successful companies globally at its current stage of development, with a proactive approach to its strategies in innovative marketing, human resource management and financial management. The company operates in the retail coffee shop industry, but it’s the portfolio of its business directions also includes being a premier roaster, as well as a marketer of superior quality type of coffee beans. Looking at the product mix of the company, it is worth highlighting the famous coffee drinks, matching selection of snacks and related fresh food items, in addition to the wide selection of signature beverages based on ingredients other than coffee. As of the current moment, the company conducts its operations in 75 countries around the world and has more than 25,000 licensed and company-operated stores. In the subsequent sections of this paper, the specific components of SWOT analysis of Starbucks will be covered, supplemented with the more general discussion of the value of SWOT in managerial and marketing related decisions. Further, some relevant recommendations will be made to Starbucks basing on the previously constructed set of factors mentioned in SWOT.
SWOT Analysis of Starbucks
The table below presents the set of major components of the SWOT analysis of Starbucks. Looking at the set of strengths, it is worth mentioning, that Starbucks is one of the most popular brands in coffee retail, and in the United States there are only two competitors that are comparable to it in terms of scope – Dunkin’ Donuts and McDonalds, the two latter companies operating on the relatively lower end in terms of quality and price (Brizek, 2014). Similarly, as it was already noted, the presence of Starbucks currently covers 75 countries, and is continuously expanding, and the company continuously emphasizes the quality of its premium products (Starbucks, 2016). As for the company’s HRM practices, the annual report notes that the company refers to the employees as its partners and there is also a special concept of compensation and benefits system, called Your Special Blend (Snell et al., 2017). It includes the opportunity for the employees to choose the types of compensations, perks and bonuses which are most suitable and preferable in their specific situation.
SWOT Analysis: Starbucks Corporation
Strengths
Weaknesses
High level of brand recognition
High price for the company's products
Wide presence globally
Cultural differences with some regions where Starbucks expands of plans to expand
High quality of products
High dependence on the US market
Superior HRM practices
Insufficient variety in snacks and food category
Opportunities
Threats
Higher levels of investment in R&D
Economic downturns
Introducing new technologies into operational processes
Consolidation of competitors
Increasing variety of the product mix
Increase in coffee prices
Further expansion into developing markets
Local competition
The weaknesses for the company are the facts that the price might be not affordable for all consumers, excessive amount of shops based solely in the US, the possibilities of poor fit with the food and beverage traditions of other countries and the lack …
