By: Melisa Magnuson, Megan
Keough, and Tamara Sprauer
About Starbucks
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No. 1 brand coffeehouse in the world
20,000 coffeehouses, 60 countries
Founded in 1971 at Pikes Place Market
Headquarters in Seattle, WA
149,000 employees
Fun Fact: On average adds 2 coffeehouses a
day since 1987
Merchandise
• Advertises to 25-40 year olds, both men and
women:
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Coffee
Tea
Food and pastries
Espresso pods
Coffee beans
Drink ware
Music
Books
Key Executives
Howard Schultz
• CEO
• Age: 60
• Net Worth: $2 billion
Troy Alstead
• Chief Financial Officer
• Age: 48
• Total Annual Compensation: $4.2 million
Simone Valdez
• Senior Buyer
Financials
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$13.66 billion in sales (2013)
Revenue $13.29 billion (2012)
Valued at $4 billion
Specialty drinks count as 75% of sales
Advertising for Starbucks
• Primary target market: women and men aged
25 to 40
• Customers tend to be “urbanites” with
relatively high income, professional careers
and a focus on social welfare
• Made coffees available for direct order online,
in supermarkets, and offered at select food
service outlets
SWOT Analysis: Strengths
• Sound financial records
• No. 1 brand in coffeehouse segment valued at
$4 billion
• Starbucks ‘experience’
• Employee management
• High Quality
Weaknesses
• Coffee beans price is major influence over
firms profits
• Product pricing
• Negative publicity
Opportunities
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Extend supplier range
Expansion to emerging economies
Increase product offerings
Expansion of retail operations
Threats
• Rising prices of coffee beans and dairy
products
• Trademark infringement
• Increased competition from local cafes and
established competitors such as Costa Coffee,
McDonald’s, Dunkin Brands, Nestle
• Saturated markets in developed economies
Sources
• http://www.forbes.com/profile/howard-schultz/
• http://www.forbes.com/companies/starbucks/
• http://www.strategicmanagementinsight.com/sw
ot-analyses/starbucks-swot-analysis.html
• http://www.starbucks.com/
• http://www.fanpop.com/clubs/starbucks/images
/3208054/title/starbucks-logo-wallpaperwallpaper