Here is the my SWOT analysis for Star bucks(Nasdaq: SBUX) corporation, this analysis is based on Harvard Business Review article on Star bucks(2002).
Strengths -
- By 2002, Star bucks established as a dominant specialty coffee brand in
- Branding strategy, customer service and coffee shop atmosphere.
- Employee retention is good, provided health insurance and stock options to everyone.
- Ranked 47th in the fortune magazine list of best places to work.
- Introduction of non-coffee-based line of Frappuccino beverage, SVC and T-mobile hot spot.
- Joint venture with Pepsi-Cola and Dreyer’s Grand ice cream.
- Owns one-third of
Weakness -
- Only seven states had more than 100 star bucks locations.
- It is not hiring more people, which reduce the customer waiting time.
- Good presence in US, but in other countries.
- Poor service and quality over a period of time.
- Part of Source of investment is from EPS (earnings per share), which is dependent on stock price.
- Eight states in the
- Open more locations across US
- Getting into “Roasting to Order” sector, shipping the order in 24hrs.
- Taking over the International market.
- Exploring others areas of products other than coffee.
- Buying out the emerging coffee shops and capturing the market.
- Developing products for customers for different ethnic background.
Threats -
- Average customer visit reduced from 18 to 5 times a month.
- Other coffee shops strong presence in few states.
- Customers finding a replacement of coffee or a competitor launching a replacement product.
- Little image or product differentiation between star bucks and the smaller coffee chains in the minds of specialty customers.
**Information provided above is purely for academic purpose only and not be used for any real time situations/analysis.
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