This paper represents a classic SWOT (Strengths, Weaknesses, Opportunities, Threats) and PEST (Political, Economic, Social, and Technological factors) analysis of the famous American business - Starbucks.
Starbucks Corp is one of the top ten coffee companies in the world with most of its sales in North America. (Euromonitor International : Global Company Profile, p. 5, 2007). Starbucks is not expected to enter international markets via licensing as foodservice is not its main focus. Coffee is its main strength and that is considered a supplement/complement to retail services. Its retail presence is strong in North America but limited to that region. China is expected to become the company’s second largest market. Euromonitor International Asia-Pacific reports that China is “expected to have one of the lowest forecast growth rates for fresh coffee, the category in which the company operates (12% over the 2005-2010 period compared to world growth of 13% over the same period) and the company is up against some strong competitors in hot drinks.”
The study finds Starbucks' strengths as follows.
- Globally, Starbucks is number one in specialty coffee and specialty coffee shops.
- Excellent brand equity and reputation for premium coffee.
- Concentrates on employee satisfaction and great working environment.
- Continues to be the leader in innovation by offering Internet access in its stores, offering a Visa card, and new beverage
- Rapidly gaining success in the international markets. ...