Starbucks is one of the best known coffeehouse chains in the world. Each store sells a variety of innovative products to complement the array of coffee choices available

Question

However, over half of the current stores are located in the United States and the expensive nature of the coffee leaves Starbucks vulnerable to changes in consumer spending behavior (such as recessions). Starbucks has begun initiatives to sell its specialty coffee beans for home use, presenting a chance for a large increase in revenue and diversification. However, Starbucks faces fierce competition seeking a piece of its lucrative market share and the threat of consumer behavior changes, given its reputation rides on a singular product. Perform an SWOT analysis for Starbucks.

Answer 1

Strengths—High profit specialty coffee, well-known brand image
Weakness—Most stores located in the United States, most profits come from coffee (both are lack of
diversification)
Opportunities—Emerging market in coffee beans for home use, chance for global expansion
Threats—Intense competition, consumer behavior changes (less spending during a recession on its luxury coffee, change in beverage preferences)