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37067113Assignment1
STARBUCKS CORPORATION
SWOT ANALYSIS

COMM 101: Section 103
Piper Hoekstra: 37067113
September 20, 2011

Overview:
Name: Starbucks Corporation
Location: Seattle, Washington, USA
Business: Includes the Starbucks chain and Seattle’s Best Coffee
Product: Specialty coffees, teas, iced drinks, sandwiches and pastries

Strengths:
-Starbucks Corporation is the top provider in its product of specialty coffee in the US
-Markets itself as the third place [1]
-It maintains a large geographic presence in the US and has developed a strong brand image
-It is known for its quality and customer service
-Starbucks offers a large variety of products and is continuing to expand these products
-Eco-friendly company that acknowledges its ethical and global responsibility [3]
Opportunities:
-Using Seattle’s Best Coffee to expand markets without diluting the major brand [1]
-Expanding into the Asian markets [5]
-Seasonal marketing attracts need-based customers [4]
-Expanding its products to include more fresh foods Weaknesses:
-High priced products
-Mainly dependant on the US market which is still affected by the recession
-Heavy dependence on coffee
-Expansion into the untapped Asian markets comes with risks and uncertainties [2]

Threats:
-The price of coffee as a commodity greatly influences Starbucks profits [2]
-Fast food restaurants, coffee chains and local cafes are primary competitors
-The downturn in the US economy influences the incomes of customers and their willingness to spend money on coffee

Analysis:
Starbucks leads in specialty coffee shops and has established itself as a strong company and brand [1]. In 2010, the company was the fourth largest consumer foodservice brand in the US and fifth in the world and each year its net profit shows consistent increases [1]. After the recession, Starbucks refocused its marketing towards the idea that it is the third place – between home and work. As opposed to fast, impersonal service, Starbucks works towards gaining loyal



References: [1] Starbucks in Consumer Foodservice (USA). (2011, August 10). Passport GMID. Retrieved from http://www.portal.euromonitor.com.ezproxy.library.ubc.ca/Portal/Pages/Magazine/WelcomeP [3] Environmental Stewardship. (2011). Starbucks Coffee Company. Retrieved from http://www.starbucks.com/responsibility/environment [4] This Town has PSL Passion [Video]. (2011). Starbucks Coffee Company. Retrieved from http://www.starbucks.com/ [5] Starbucks Corporation SWOT Analysis. (April 2010). DATAMONITOR: Starbucks Corporation.

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