Starbucks SWOT Analysis 2022: A Detailed Report!


Starbucks is a franchisor and coffee chain operator that has its roots in America. This corporation has been identified as one of the fastest growing coffee chain clubs in the industry. It was founded in 1971. It has its headquarters in Seattle, USA. It has about three hundred forty one thousand employees, according to the current estimation.

The Starbucks center is well-known for its non-intimidating environment. They are the best in their field for offering affordable drinks to their customers. They have evolved into a coffee house giant.

Starbucks – At A Glance

Company Name Starbucks
Industry Coffee Shop
Founded March 30, 1971
Founders Jerry Baldwin, Zev Siegl, Gordon Bowker
CEO Kevin Johnson
Headquarter Seattle, Washington, U.S.
Annual Revenue $26.50 Billion (FY 2019)

Starbucks SWOT Analysis

SWOT evaluation is recognized as a framework for distinguishing and studying an organization’s strengths, weaknesses, possibilities and threats – that’s what makes up the SWOT acronym. The first intention of SWOT evaluation is to help companies in growing cognizance of the elements in developing an enterprise decision. SWOT accomplishes this with the aid of reading the internal and outside elements with the intention to affect the viability of a decision.

A Starbucks SWOT Analysis presents a strategic SWOT assessment of the economic corporation and operations of the company. The Starbucks SWOT evaluation has been compiled through the author to give to you an easy and unbiased view of the number one strengths and weaknesses of the industry employer and the capacity opportunities and threats.

Strengths of Starbucks in SWOT Analysis


Strengths of this Starbucks SWOT evaluation are Starbucks’s skills and assets that one might also additionally leverage to assemble a sustainable enthusiastic advantage withinside the marketplace. Strengths are diagnosed from the wonderful elements of five key assets and skills: bodily assets which encompass land, buildings, critiques and achievements. Past sports and processes, monetary and human assets. Here are some key factors in the Starbucks SWOT evaluation:

Great and Skilled Workforce: Starbucks has one of the most skilled workforces out there in the cafe sector. They are known for treating their employees nicely. They have their own training regimes designed for their workers. This helps them to train their employees to become the very best in mixing drinks and handle customers in a professional way. This exceptional treatment helps them to earn more customers. And since they treat their employees better than other cafes, many people are willing to join as a barista. So, they also have a great line of potential workers lined up.

Great Reward System: This is one of the cleverest parts of their business model. This means that they have devised a system that helps them have long term customers. In this system they reward the customers after they have spent a considerable amount of their money on them. In their specific model, they are rewarding their customers with 3 points for each dollar of purchase. Then when the customer has accumulated 150 points, they can cash them in for a free drink. To add a more distinctive personality to this process, they have dubbed their points as stars. This gives the clients a sense of progress and turns them into returning customers. And soon they turn into regular customers.

Gender Sensitive Initiatives: Starbucks is well known for gender sensitive initiatives and their support towards LGBTQA+ community. This includes their employees being respectful towards the community members. They also do not allow any sort of slander or commotion targeting these groups. One of the most considerate actions of theirs is their gender-neutral bathroom. This is very respectful for the trans, gender fluid and nonbinary people. As these people struggle continuously to fit in a society that is obsessed with gender roles this initiative is like a breath of fresh air.

Not to mention it also promotes healthy, non-sexual interaction between men and women that teaches to them to respect others privacy and personal space. This has gained them quite a number of positive feedbacks from the people.

Weaknesses of Starbucks in SWOT Analysis


Weaknesses of this Starbucks SWOT analysis are the areas, abilities or capabilities anywhere Starbucks lacks. It limits the functionality of the organisation to assemble a property and impressive advantage. Weaknesses return from lack or absence of 5 key properties & abilities – activities & processes, physical property collectively with land, building, human assets, economic property, and previous method evaluations and successes. Here are a few key aspects of Starbucks’s weaknesses:

The Issue With European Taxes: Now we all love and adore Starbucks. Of course, one would think a company that is trusted as much as Starbucks won’t do anything against the law, right? Well, one would be very wrong. Because, as you are reading this, many European government officials have claimed that Starbucks are evading taxes. Later the authorities have addressed this matter and resolved it with the government. But still, it is not a good look for the brand. It is a given that this issue will remain as a blimp in Starbucks’ otherwise perfect record.

High Rate for Drinks: Starbucks doesn’t exactly have a lot of compassion for the middle or lower class people in our society. Because their price range of their drinks makes it hard for these people to afford their drinks. It also means that they are missing out on a lot of potential customers as more than 50 percent of the society comprises them. So, this is a huge disadvantage for them as their opponents continue to target this demographic and benefit from it.

Generalized Product Standards: Many of the Starbucks drinks are known to have properties that are not that different from other shops if we are going to be truthful. Because of this, many of their customers are turning towards other alternatives that provide similar drinks that, according to them, taste far better and are cheaper. Many drinks are not even preferred by the mass media. And the quality is not at par with their prices. This makes for a huge weakness. And as many people are becoming aware of their spending habits, their customers are steadily decreasing.

Opportunities for Starbucks in SWOT Analysis


The opportunities in this Starbucks SWOT analysis are elements and features of the macro environment that Starbucks can use to consolidate current market roles or use for similar expansion. Opportunities can arise from various factors, such as adjustments to buyer preferences, technological innovations, political functions and coverage adjustments. , Financial growth and disposable income growth of buyers.

Expansion of the Market: As they have many countries unexplored they can easily expand their market. This will turn them into a cafe giant. This will help them turn in a great profit. They can also try to make some drinks special to their specific outlets. This will also help them find their signature drink. This could also turn out to be one of the media exposure strategies.

Latest Coffee Drink Trends: Although Starbucks is at the vanguard of modern-day espresso generation, there’s nevertheless room for expansion. From fine foam generation to snap-chilling, returned to black, and RSI-lowering gizmos, there are infinite opportunities supplied through the present-day espresso traits and technologies.

Threats for Starbucks in SWOT Analysis


Threats of this Nintendo SWOT analysis are macro surroundings components and trends which may derail the enterprise version of Nintendo. Threats can emerge from various factors comparable to – political trends & coverage changes, money growth, technological innovations, slump in shopper disposable income, and adjustments in client preferences.

Global Pandemic: Starbucks has quickly closed anticipated 2000 shops in China because of the outbreak of coronavirus. Considering Starbucks has 4123 shops in China, and nearly 1/2 of the shops are closed, it’ll have a bad effect on their financials in 2020.

Easily Doable Recipes: Many preferred menu drinks may be replicated for an awful lot less cash than those discovered in regular diners. Let’s say Starbucks wishes to dominate the “basic” espresso market. If this is the case, the enterprise needs to triumph over the false impression that simplicity makes replication difficult, both through emphasizing the authentic beans or the brewing process. Their coffee retail income in the United States is $5.18 billion.

Starbucks SWOT Analysis Overview Template


Conclusion and Recommendations for Starbucks

Here are a few recommendations for Starbucks for their further improvement:

  • They can definitely work more on their money management skills.
  • Getting their own shop space instead of renting could be a great option for them.
  • They should most definitely get more equipment in their shops.
  • They try to cut prices off of some of their items which will help them oh so obviously.
  • They easily use creativity in their campaigns across the market.
  • They can also try to convince people to be a member of their community.

Starbucks is an intimidating presence in the beverage sector and it likes to maintain its presence. This makes them more cautious as to not lose their footing. This is where the SWOT analysis comes in. It helps the corporation to make better choices regarding their financial responsibilities and rival companies. This also helps them to analyze and rethink their previous and current strategies and all of their ins and outs.

So, it can be summarized that Starbucks has the potential to be the next big thing in the beverage industry if it can only tweak some of its shortcomings.

picture of Angela N. Davis

Written by: Angela N. Davis

I'm Angela, founder & content creator of SWOT Hub. As an entrepreneur, I love to explore various brands/companies & write about them.

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