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Starbucks SWOT and PESTLE Analysis

ID : 5276753| May 2023| 19 pages

COMPANY PROFILE -Starbucks

Business Sector :Restaurants and food

Operating Geography :United States, North America, Global

About Starbucks :

Starbucks is the world’s biggest coffee house chain which started operations from the year 1971 from Seattle, United States. Primarily Starbucks started as a whole bean coffee, tea and other spices roaster and retailer. Presently it has more than 30,000 retail stores in 83 markets. The current CEO is Howard Schultz. Its product offerings range from hot and cold beverages, merchandise (mugs, books, tea and coffee brewing equipment, etc.), fresh food (sandwiches, salads, yogurt parfaits, Baked pastries etc.) and consumer products such as ground and whole bean coffee, tea and ready-to-drink bottled Frappuccino, iced coffee, tea etc. Starbucks stocks are traded on NASDAQ under the symbol SBUX. As of October 3, 2021, the retailer employed 383,000 people across the world. For the year 2021, it ranked #125 in Fortune 500 list. In 2022, Starbucks partnered with PepsiCo through the North American Coffee Partnership (NACP) to create ready-to-drink (RTD) coffee and energy products such as Starbucks BAYATM Energy.

Starbucks’ unique selling proposition or USP lies in being one of the leading coffee makers in the world. Starbucks’ mission statement reads. “To inspire and nurture the human spirit - one person, one cup and one neighbourhood at a time.

Starbucks Revenue :


US$ 29,060.6 million – FY ended 3rd October, 2021
US$ 23,518.0 million – FY ended 27th September, 2020

Competitive Analysis of Starbucks

SWOT
PESTLE
The SWOT analysis for Starbucks is presented below:
Strengths
Weaknesses
1. Quality assurance of products and service.
2. Financial stability and monetary controls
3. Benefits to partners
4. Established itself as a global brand
5. Innovating and exploring new flavors.
6. Creating brand image with social goodwill and connecting with the people
1. Constant price hikes can deter many of its potential customers
2. Unavailability of products in all of its stores
3. Dependency on Suppliers.
4. Cutting ties with Fairtrade might lower the standards
Opportunities
Threats
1. Expand in the international markets.
2. Selling products in the supermarkets.
3. New product innovations
1. Price and supply of coffee is unpredictable.
2. Other Competitive brands with similar and cheaper products
3. Impact of Covid-19 pandemic
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Detailed SWOT Analysis of Starbucks

Strength

This section is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

1. Expand in the international markets: Starbucks has its presence globally but there are potential international markets such as Central Europe, some regions of South Africa which have not been tapped yet. It is aiming to almost double its number of coffee shops in the world's second largest economy, from 3,300+ to 6,000 before the end of 2022. The company has also opened stores in South Africa franchising with Taste Holdings. In Africa the company plans to target the middle income class customers. 2. Selling products in the supermarkets: This is something which has not been done yet but if materialized it can bring in profits and increase the availability of products. The company has signed a deal with Nestle to market the products in the supermarket Aisles. Nestle is paying more than $7 billion to handle global retail sales of Starbucks's coffee and tea outside of its coffee shops. The deal gives Nestle the rights to market, sell and distribute Starbucks, Seattle's Best Coffee, Starbucks Reserve, Teavana, Starbucks VIA and Torrefazione Italia packaged coffee and tea. It will also be able to put the Starbucks brand on Nestle single-serve capsules. The remaining section under "Opportunity" is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.
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References used in Starbucks SWOT & PESTLE Analysis Report

1. 2021 Annual Report - https://s22.q4cdn.com/869488222/files/doc_financials/2021/ar/Starbucks-Fiscal-2021-Annual-Report.pdf
2. Starbucks China Increases Prices for Certain Products – Pandaily - https://pandaily.com/starbucks-china-increases-prices-for-certain-products/
3. Starbucks coffee will no longer be Fairtrade as retailer cuts ties with charity in UK & Europe - https://inews.co.uk/news/starbucks-coffee-snacks-and-drinks-will-no-longer-be-fairtrade-as-retailer-cuts-ties-with-charity-in-uk-1465445
4. Bronzeville Starbucks Shuts Down For Weeks Because Of COVID-19 Cases, Staff Shortages, Alderperson Says - https://blockclubchicago.org/2022/02/15/bronzeville-starbucks-shuts-down-for-weeks-because-of-covid-19-cases-staff-shortages-alderperson-says/

The detailed complete set of references are available on request in the 'Complete report' on purchase.

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In-text: (SWOT & PESTLE.com, 2024)

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Starbucks SWOT and PESTLE analysis has been conducted by Soumya Surya Adhikari and reviewed by senior analysts from Barakaat Consulting.

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