365 Careers. (2017b). Starbucks SWOT analysis [Video file]. Retrieved from https://www.youtube.com/watch?v=mR9eICQJLXA
Transcript
okay great so in this lesson our goal
would be to apply the SWOT framework in
practice shouldn’t be that difficult
right the company we’ll examine is
Starbucks the well-known US coffee
company in coffeehouse chain it was
founded in Seattle in 1971 and operates
in several countries around the world
let’s start with the company’s strengths
first almost everyone knows its brand
right so it definitely has a strong
brand recognition Starbucks has been
proclaimed the most recognized coffee
brand in the world quite an advantage
regarding other companies in the
industry
the firm’s brand is one offering of a
differentiated product to customers
which is coherent with its strategy and
pricing clients have expressed they love
the atmosphere in Starbucks coffee
houses they can use free Wi-Fi and enjoy
the coffee drinking experience to the
fullest the company owns thousands of
outlets around the world and its clients
can find it even when traveling overseas
that’s a strong advantage as an
insurance oil clients can remain such
even overseas and finally Starbucks
supply chain management ensures the
quality of coffee served to customers is
excellent the company chooses its
suppliers carefully which improves the
quality of its products and ensures
clients receive a super coffee
experience this is another choice in
sync with its differentiation strategy
ok very good let’s take off our rosy
glasses and consider some of the firms
of weaknesses one could argue Starbucks
offers the same product in all countries
where it operates it does not customize
it according to the different tastes of
people in different geographies for some
customers this is an issue and they
prefer competitor products tailored to
their specific geographical preferences
in addition Starbucks has a premium
price policy which is not in line with
most customers expectations not all
countries have enough middle and
high-income class individuals who can
afford to pay extra for their coffee
weakness number 3 would be the high
employee turnover that the chains coffee
shops have it is difficult to serve
coffee as a premium product when the
company’s baristas have
been on the job for only a couple of
weeks in terms of opportunities we can
say the following
Starbucks can access new countries
easily it simply has to apply its
existing business model in these new
geographies emerging markets can be a
great source of growth for the company
Starbucks has also entered agreements
within the entertainment industry and
partnered with movie producing companies
that can be a great opportunity for the
firm to one of the biggest threats for
Starbucks is the saturation of the
American market which is where most of
its outlets are located consumers are
increasingly invested in healthier
lifestyle and some substitute products a
better positioned to capture the
attention of the health-conscious
clientele okay we’ll stop here this is
what a SWOT analysis looks like in
practice
the depth of the observations included
in the analysis depends on the
information we have about the company
I’m sure an industry practitioner would
be capable to prepare a much deeper
analysis however the important point is
you now know how to perform a SWOT
analysis on your own and you can
distinguish the important questions from
the rest when it comes to analyzing a
company SWOT analysis is a great tool
that allows us to visualize and
concentrate on some of the most
important topics when analyzing a
company this will do for now thanks for
watching
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