Question

Conduct a SWOT analysis for Starbucks Coffee and discuss your findings. What advantages does the company have over its competition? What opportunities exist in the industry from which the company can benefit? Who is Starbucks competition, and what types of risks might they pose? What weak areas could the company improve to compete with its strongest competitors?

Answer 1

A SWOT Analysis is a strategic tool that helps you examine a company's strengths and weaknesses as well as opportunities and threats. The results of the examination are typically depicted as a four-cell chart.

The required SWOT Analysis is available in the picture below:

Discussion of findings

Advantages over competition- These are the strengths mentioned above. They give Starbucks a strong foundation for its overall activities and competitive edge.

Beneficial Opportunities- Again, mentioned above

Starbucks competition- There's direct competition from coffeehouses like - Costa Coffee, Café Coffee Day, Blue Bottle Coffee etc. , indirect competition from independent fast food chains (who also have coffee on their menus) like McDonalds, KFC and also indirect competition in the tea segment from Twinings, Tazo etc. Competitors pose risks like product imitation, cutthroat pricing, stealing away customers etc.

Improvement Areas - Available in the weaknesses cell above.