The Starbucks SWOT analysis, therefore, reveals that the company has significant challenges to deal with. Opportunities as Per Starbucks SWOT Analysis One cardinal aspect that comes to the foray as a result of the Starbucks SWOT analysis is the fact that both on the internal and external front, Starbucks has several growth opportunities that it could capitalize on to overcome its weakness.
Americas, which includes the U. Aside from its core coffee products, the company has been seeing good Starbuck swot from newer products, like Teavana teas. Partnerships with local players would mean significantly larger and better price rationalization, They will be able to offer a lot more products at affordable rates.
Unless you are stopping by Starbucks to buy a regular cup of coffee, the price can break the bank for a regular customer. Every loyal Starbucks customer knows that Starbucks comes out with new flavors of coffee every year.
Opportunities New Distribution Channels: The equity, while not a steal at recent levels, seems appealing relative to its prospects, too, trading at about 25 times forward share earnings.
This is also seen as a critical avenue to peg their future growth on and maintain a lead over competitors from across the world. It also enables Starbucks to pay a modest dividend, with the yield typically hovering around the 1.
Threats The company faces threats from the rising prices of coffee beans and is subject to supply chain risks related to fluctuations in the prices of this key input. Considering the possibility of cannibalization, Starbucks must act really careful not to harm its revenue. We will address these issues by performing an easy-to-follow SWOT analysis of the company, evaluating its Strengths, Weaknesses, Opportunities, and Threats.
It will also give them the firepower to optimize its strength.
And if this happens, the overpriced Starbucks coffee will get even more pricey. Apart from that it could sell its coffee through local stores or the big retailers as well.
In particular, the company is getting a lift from brisk K-cup growth, which is helping it gain ground in the booming single-serve coffee segment.
Also, Starbucks is not a great hit with the price conscious customers because of the relatively higher billing rates.
Starbucks has also had some struggles in Europe, where the sovereign debt crisis and ensuing belt-tightening measures have taken a toll on sales.
These local sellers can quite easily imitate the cafe ambience that Starbucks offers. The organization is dependant on a main competitive advantage, the retail of coffee. The negative image of a large American corporation selling coffee has likely turned some Europeans away.
Management will need to try other options to grow in this prosperous continent. Slow Expansion in Europe: There is a new threat, however.
In Chine, Starbucks plans to open stores this year.Business prospects at Starbucks are bright. And the stock price has been rising at a fairly consistent rate over the past few years.
The question investors should ask is whether the company will be able to keep the good times rolling, and continue to post good earnings and boost the share price.
Likewise, is this stock is a good long-term play?
According to the SWOT analysis, Starbucks has plenty of opportunities to take, and a few threats to deal with. This Starbucks SWOT analysis reveals how the largest coffee chain in the world uses its competitive advantages to continue growing so successfully all over the world. It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most.
Starbucks SWOT Analysis: The Best Coffee Makers A definition for novice readers: SWOT is an acronym for S trengths, W eaknesses, O pportunities and T hreats related to organizations.
SWOT is also referred, as the “SWOT Matrix”. So what is a SWOT analysis indicative of in terms of Starbuck’s financials and the business module?
Well, the Starbucks SWOT analysis highlights the fundamental strength. Download PPT for Complete Course on SWOT Analysis Total Slides: Starbucks is a globally recognized coffee and beverages brand that has rapidly made strides into all major markets of the world.Download