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Starbucks Strategic Planning Using SWOTT Analysis
"Mirror, mirror, on the wall, whos the fairest of them all?" The Queen in Snow White.
Beauty is only skin deep, companies must also look within to secure longevity. Before a
company can successfully bring a mission statement and vision to fruition, they must take
a good hard look into the mirror. A company must reflect upon internal strengths and
weaknesses, external opportunities and threats, and consider the trends associated with
each (SWOT analysis). The fundamental process of strategic planning is through the
encompassment of SWOT analysis. Taking a bite from the poisonous apple will be
inevitable if a company fails to self-evaluate and strategically plan for the future.
Starbucks Coffee Company is a paradigm of effective strategic planning through SWOT
analysis. Astute analysis coupled with the ability to act swiftly has catapulted them to the
position as the number one gourmet coffee retailer. They continue to document increased
revenue annually and maintain a majority share of the gourmet coffee market.
Strengths Weaknesses
Product diversification
Customer loyalty
High visibility Self-cannibalization
Price
US market reliance
Problems in some international operations
Opportunities Threats
Expansion into retail operations
Technological advances
Expand globally
Brand extension
Product distribution Competition
Prices of coffee beans and dairy
Economy
Political tensions in global markets
Figure 1. SWOT Analysis for Starbucks Corporation
Strengths
Starbucks serves up strong drinks and remains strong as the leader in the coffee industry
market through product diversification, customer loyalty, and high visibility. Starbucks
caters to the addictions and satisfies the needs of socioeconomic groups attempting to beat
the daily grind. Got Milk? Starbuck does, and they put a spin on the famous marketing
campaign to add calcium to the diet; they have created a dairy appeal for youths (Berry,
2002). Whether younger or older, customers with sundry palates may find something
desirable amongst Starbucks diverse products. They are sure to delight the senses with
gourmet coffees, flavorful teas, baked pastries, and a myriad of seasonal hot and cold
specialty drinks for any age patron. Starbucks has built a reputation and developed a loyal
customer base. Where else can a complicated complex individual receive service with a
smile when ordering a
"triple-bypass-extra-hot-no-water-venti--soy--skimno-whip-one-splenda-white-mocha-stirr
ed-not-shaken-double-cupped-Mochaccino?" Starbucks has created a safe environment
where people are free to design creative coffee concoctions; an environment that has
instilled trust while in the company of comfort. Trust is a powerful tool that has provided
Starbucks with the ingredients necessary to brew success. With up to 87 stores within a
5-mile radius in key locations, Starbucks has made their presence known and can easily
