Swott Analysis: Starbucks

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SWOTT Analysis: Starbucks The Starbucks Company is the leading corporation of an international coffee chain that started in 1971 with one store in Seattle, Washington. Around the world Starbucks has, as of January 2, 2011, 17,009 stores, (with 8,870 company owned chains and 8,139 private licensed stores), (Starbucks Coffee Company, 2011). Starbucks has cornered the market as the largest coffeehouse company in the world, with operations in 50 countries (Starbucks Coffee Company, 2011). Strengths Although Starbucks is an industry market leader, it doesn’t forget its roots. It has one of the most popular and accredited customer service operations in the country, resulting in a strong customer loyalty and support system, along with strong and long term bonds with not only the farmers but their suppliers as well. Starbucks is also known for its huge community involvement and its ever growing environmental commitment to using recycled or reused materials for its cups. Starbucks has experienced large amounts of success domestically and globally, leading to its massive expansion. (Starbucks Coffee Company, 2011) Weakness With Starbucks being such a massive entity, its customers could begin to believe that the company may lose its focus. While the company has experienced great success, it may fall short when compared to less expensive competitors. Customers may choose to opt for a less expensive product, which in turn may lead to even higher costs to an already expensive product. Additionally, as the company expands its international exposure, Starbucks has less control over its stores outside the US (MBA Tutorials, 2011). Its inability to control its international franchises may lead to degradation in its hallmark customer service or products. Opportunities The demand for American based products is presenting a number of opportunities for the Starbucks Company. It
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