Swot Analysis of Starbucks

SWOT ANALYSIS OF STARBUCKS" COFFEE

INTRODUCTION

Starbucks is a coffee company that was started in 1971 in Seattle, Washington. Three gentlemen that loved the coffee bean started the company and through many ups and downs it has grown into what it is today. We have been asked to do a SWOT analysis on the Starbucks' company; therefore, this paper will address the strengths, weaknesses, opportunities and threats that I perceive for Starbucks'.

Lets take a look at what a SWOT analysis is all about. A SWOT analysis is tool that a company can use to look at the strengths, weaknesses, opportunities and threats they may face. It is an internal tool that can help management see where improvement can be made.

STRENGTHS

First lets look at Starbucks' strengths. Starbucks' have many strengths to talk about. They have been around for sometime and have work hard at making a good name for themselves, as you can see from the list below:

* Fantastic customer service--Helps in the word of mouth advertisement and keeps people coming back.

* Great employee moral--Keeps employees working for us and keeps turn around low; therefore, keeping cost down.

* Established company logo--Instant recognition

* Established overseas market--Instant recognition

* Company website--Recognition and a place for customers to find what they need.

* Great store locations--Keeps the company accessible to their customers

* Great reputation with realtors--Keeps the company reputation up and helps them find the best location for their business.

* Establish supplier relationship

* Knowledgeable owners, Upper Management and Staff

* Great employee relationships--Keeping employees happy makes any business a better place because it flows forward to the customer.

* Established brand--Recognition

* The ability to not franchise--This allows for more control over the company's product.

* The ability to go into new markets--The Frappuccino Market opened up an new area of profit for Starbucks'

* The ability to sell their products in the grocery stores--"Additionally, grocery and convenience stores nationally in the U.S. will carry regular and light varieties of Starbucks Iced Coffee beginning May 2006" (Business Wire, February, 2006)

WEAKNESSES

Now, we will look at Starbucks' weaknesses. Starbucks' does not have as many weaknesses as strengths but they could overcome the weaknesses if worked on. The company's weaknesses are:

* Too much focus on expanding--When a company focuses on one thing too much, they may lose touch with what they already have.

* Their products are expensive--Can this company continue to be s expensive with the fad of new coffee houses emerging?

* Competition--Competition is increasing can Starbucks continue to expand and still make a profit.

* The idea of having so many stores so close together--With so the continued growth of the coffee industry is it wise to continue to put stores so close together?

OPPORTUNITY

Starbucks has many opportunities that lie ahead. They can move forward into many profitable areas if they would like to. Here are some of the opportunities that are seen in the SWOT analysis:

* Continued growth--The opportunity to continue growing in the US market.

* Continued growth overseas--" Customers in Sao Paulo and throughout Brazil will now have an opportunity to enjoy Starbucks high quality coffee,