STARBUCKS SWOT ANALYSIS

Starbucks Experience Sound financials records Largest Coffeehouse in the World Extend Supplier Network Expansion of Emerging Economies Increase Product Offerings Increased Competition Supply disruptions Trademark Infringements Coffee Bean Prices Product Pricing Negative Publicity

Starbucks Experience –Friendly staff, warm atmosphere, and customer service –Coffee, Food, Music, Wifi Sound financial records –Profitability is up 14% over the past few years –Has a 25% stock return on investment Largest Coffeehouse in the world –20,000 store locations –Offered in 60 countries in the world

Coffee Bean Prices –A commodity and cannot be controlled by Starbucks –Due to external factors Starbucks cannot estimate the price of coffee Product Pricing –Most expensive items offered in their industry –Cheaper products are offered at a lower price, and were rated higher. Negative Publicity –Company needs to be more green friendly –Tax evasion and poor treatment of some suppliers

Extended Supplier Network –New suppliers in Asia –Less dependence on South American countries Expansion of Emerging Economies –Opening locations in China –Opening locations in India Increase Product Offerings –Offer more products to reach a larger target audience –Begin to offer beer and wine

Increased Competition –Local cafes can offer better products at lower prices –Major coffeehouse chains are growing Supply Disruptions –Political and economic conditions can deny supply –Weather conditions can make for lower supplies Trademark Infringements –Company is involved in legal cases involving illegal use of trademark –Cases have already cost Starbucks over 10million dollars