Read the following case and do its SWOT analysis
Starbucks has become a well-known company for selling the highest quality coffee beans and
best tasting coffee products. It was one of the first companies to realize that the real money to
be made was in beverage retailing, not just coffee beans. Starbucks created a coffee for the
coffee connoisseurs and go to great lengths to acquire only the highest quality of coffee beans.
They have set new precedence by outbidding the European buyers for an exclusive crop of
coffee beans, which produces one of the best coffees in the world. Roasters of Starbucks
coffees are extensively trained for one year. Starbucks has the distinction of being the public's
educator on Expresso. They have also recently started to expand to packaged and prepared tea
in response to the growing demand for this product. There are no other national coffee bar
competitors in the same scale as Starbucks. Starbucks is the only competitor in the coffee bar
market that has a recognized brand image. The difference between Starbucks and other
coffeehouses is that they own all their stores and do not franchise. Starbucks stores operates in
most metropolitan areas of the United States and also has a direct mail business to serve
customers in every state. They have introduced gourmet flavored decaffeinated coffees as well
as specialty flavors and whole bean coffees for the faithful coffee drinkers. They have also
added light lunch fare to their menu. Starbucks had recently expanded its emphasis
internationally. There are opportunities waiting in possible joint ventures with other
corporations to design new product associations with Starbucks' coffee. Although Starbucks has
enjoyed tremendous success in the past few years, there are a few obstacles looming. Since the
popularity of the coffee house idea has grown, some cities wish to issue regulations on the
coffeehouses due to complaints of late night patrons becoming uncontrollable. The cost of
coffee beans is expected to rise in the future due to lower supply, which may tighten the
margins on coffee merchants. The higher costs have cut into markets, which have heightened
the competition in a crowded market. There is an enthusiasm of health consciousness growing
in the United States. People are cutting down on caffeine but the consumption of decaffeinated
coffee has not seen an increase. Although Starbucks does not have major national competitors,
they do have regional ones. Tourists become confused when ordering, since they cannot simply
order a cup of coffee. Although Starbucks is interested in gaining recognition and growth in
Europe, they will not be pioneers in the European coffee market as they were in the United
States.
STARBUCKS SWOT ANALYSIS
STRENGTHS:
 A well known company.

Highest quality coffee beans and best tasting coffee products.

Among the first companies to realize that the the real money was in the
beverage retailing, rather than just selling coffee beans.

They have set new precedence by outbidding the European buyers for
an exclusive crop of coffee beans, which produces one of the best
coffees in the world.

Roasters of Starbucks coffees are extensively trained for one year.
 Starbucks has the distinction of being the public's educator on
Espresso.
WEAKNESSES:
 Since the popularity of the coffee house idea has grown, some
cities wish to issue regulations on the coffeehouses due to
complaints of late night patrons becoming uncontrollable.
 The cost of coffee beans is expected to rise in the future due to
lower supply, which may tighten the margins on coffee merchants.
 The higher costs have cut into markets, which have heightened the
competition in a crowded market.
THREATS:
 People are cutting down on caffeine but the consumption of
decaffeinated coffee has not seen an increase.
 Although Starbucks does not have major national competitors, they
do have regional ones. Tourists become confused when ordering,
since they cannot simply order a cup of coffee.
 Although Starbucks is interested in gaining recognition and growth
in Europe, they will not be pioneers in the European coffee market
as they were in the United States.
OPPORTUNITIES:
 They have introduced gourmet flavored decaffeinated coffees as
well as specialty flavors and whole bean coffees for the faithful
coffee drinkers.
 Starbucks had recently expanded its emphasis internationally.
 Waiting in possible joint ventures with other corporations to design
new product associations with Starbucks' coffee.