Starbucks is one of the best known coffeehouse chains in the world. Each store sells a variety of innovative products to complement the array of coffee choices available. However, 75% of current stores are located in the United States and the expensive nature of the coffee leaves Starbucks vulnerable to changes in consumer spending behaviour (such as recessions). Recently Starbucks has begun initiatives to sell its specialty coffee beans for home use, presenting a chance for a large increase in revenue and diversification. However, Starbucks faces fierce competition seeking a piece of its lucrative market share and the threat of consumer behaviour changes, given its reputation rides on a singular product. Perform a SWOT analysis for Starbucks.

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Zybrea Knight · Accepted Answer

Final Answer :

Strengths: High profit specialty coffee, well known brand image.
Weaknesses: Most stores located in U.S., most profits come from coffee (both indicate a lack of diversification).
Opportunities: Emerging market in coffee beans for home use, chance for global expansion.
Threats: Intense competition, consumer behaviour changes (less spending during a recession on its luxury coffee, change in beverage preferences).

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