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Starbucks SWOT & PESTLE Analysis

ID : 5276753| May 2019| 15 pages

COMPANY PROFILE -Starbucks

Business Sector :Restaurants and food

Operating Geography :North America, United States, Global

About Starbucks :

Starbucks is the world’s biggest coffee house chain which started operations from the year 1971 from Seatle, United States. Primarily Starbucks started as a whole bean coffee, tea and other spices roaster and retailer. Presently it has more than 24,000 retail stores in 70 countries. The current CEO is Howard Schultz. Its product offerings range from hot and cold beaverages, merchandise (mugs, books, tea and coffee brewing equipments, 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. It’s stocks are traded on Nasdaq under the symbol SBUX.

Starbucks Revenue :


US$ 22.38 billion – FY ended Oct 1, 2017 (year-on-year growth of 5.02%)
US$ 21.31 billion – FY ended Oct 2, 2016

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. Global presence.
5. Innovating and exploring new flavors.
6. Creating brand image with social goodwill and connecting with the people
1. Costly products.
2. Uniformity of products.
3. Dependency on Suppliers.
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
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Detailed SWOT Analysis of Starbucks

 

Strength

1. Quality assurance of products and service: Following its mission Starbucks provides world’s finest coffee beans and beverages. The customer experience at its outlets is relaxing and commendable. No wonder due to its persistent quality maintenance and upgradation it has scaling profit growth. They give the highest importance to the quality of their products and avoid standardization of their quality even for higher production output. As a great focus on quality, consistent performance across the years and environment friendly the company charges a premium to the customer and most of the customers also realize the same and are willing to pay the premium.

2. Financial stability and monetary controls: It is one of the most financially stable and independent company. Its credible monetary control and reinvestment strategy is responsible for the increasing number of outlets every year. Most of its income is used up in the expansion and modification of business and services. The company’s consolidated total net revenues increased 5% to $22.4 billion. These were primarily driven by incremental revenues from 2,320 net new store openings over the past 12 months and a 3% growth in global comparable store sales. The major revenues were from United States contributing to 70%.

3. Benefits to its partners: Employees of Starbucks are entitled as its partners. It provides health insurance to its part and full-time employees and gives them equity through Bean stock. It is listed under Fortune’s Top 100 places to work for. Hence it has employee retention and loyalty. The company provides extensive trainings and caters to the development and learning of the partners. Starbucks offers eligible partners the opportunity to earn a bachelor’s degree with 100% tuition coverage, coaching, counseling and advising. All U.S. partners have access to up to 10 backup care days for kids and adults per year, plus senior care planning and a premium membership to Care.com

4. Global presence: With more than 24,000 retail stores in 70 countries such as U.S , China, European Countries (Spain, Sweden, Switzerland) and some South American countries. Starbucks has established itself as a global brand. No matter in whichever part of the world its consumer is, he can be assured of the quality and taste of its product. The company has four reportable operating segments: 1) Americas, which is inclusive of the U.S., Canada, and Latin America; 2) China/Asia Pacific (“CAP”); 3) Europe, Middle East, and Africa (“EMEA”) and 4) Channel Development. Our Americas, CAP, and EMEA segments include both company-operated and licensed stores. The Americas segment is one of the most mature business for Starbucks and has achieved significant scale. Certain markets within our CAP and EMEA operations are still in the early stages of development and require a more extensive support organization, relative to their current levels of revenue and operating income, than our Americas operations. The Americas, CAP and EMEA segments also include certain foodservice accounts, primarily in Canada, Japan and the U.K.

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Weakness

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Opportunity

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Threat

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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
References used in Starbucks Analysis Report
1) Starbucks Investor Relations: http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-irhome

2) Starbucks Newsroom: https://news.starbucks.com/facts

3) Starbucks Company Profile: http://www.starbucks.com/about-us/company-information/starbucks-company-profile

4) Starbucks Company Recognition: http://www.starbucks.com/about-us/company-information/starbucks-company-recogniti

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

Copyright of Starbucks SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

Starbucks SWOT & PESTLE Analysis
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