Starbucks Swot Analysis Paper

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SWOT Analysis: The section gives you a well-rounded analysis of Starbucks strengths, weaknesses, opportunities and threats. With a market share of 32.8% in the United States (Statista, 2015) and with 21878 stores in 66 countries (Starbucks, 2015), Starbucks has a significant presence across the world. It is one of most prestigious brands in the coffeehouse sector and ranks 52 in world’s best brands (Forbes, 2015). Its strong market position and brand has enabled Starbucks to expand into International markets and also to grow significantly in the domestic markets. Over the years, Starbucks has achieved significant economies of scale with superior distribution channels and supplier relationships. Around the world, Starbucks offers the products…show more content…
Starbucks strategically chooses store locations and sets up shop in prime, premium, high visibility locations such as Retail malls, Business centers, Student dense locations and shopping streets, earning them a competitive advantage over its less famous competitors and an edge to tap prime markets. With free Wi-Fi, music, great service and importantly, a warm atmosphere, the stores are modern, welcoming, inviting and are a familiar place for people to connect (Starbucks, 2015). Starbucks has been rated in the best places to work for by rating agencies across the world including Fortune (Fortune, 2013). Starbucks is known for the benefits it provides to its employees such as stock options, retirement benefits among others, translating into exceptional customer service. A diverse product mix (Starbucks, 2015) that caters to diverse groups and its “Socially Responsible” tag (Starbucks, 2015) have helped accentuate the…show more content…
The building blocks of the value chain, aka the primary activities include Logistics – inbound and outbound, Operations, Marketing & Sales, and Service. Using its world class supply chain, Starbucks sources Coffee from various Coffee bean producers in the world and also delivers its products to the stores. It operates in over 66 countries (Starbucks, 2015) and has a very strong marketing and sales department complemented by world class service. It also prides itself on it world class Human resource management, making it one of the best places to work for. Well designed, aesthetically pleasing stores, world class infrastructure, along with use of advanced technologies and selective procurement sets its value chain apart from the rest of the
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