Performed SWOT Analysis On Starbucks

Calendar August 21, 2009 | Posted by lmfoong

 

 

Beware! This is my personal attempt to perform a SWOT Analysis on Starbucks. The findings is based on my personal observations with 10 outlets around major cities in Malaysia.

Starbucks perhaps is the most popular branded coffee shop in many part of the world and it even spread to in my country, Malaysia.

Local entrepreneurs looked at Starbucks business as an opportunity not to be missed but wonder how to follow this branded coffee outlet. In Malaysia, there are plenty of traditional coffee shop operates by the locals using traditional set ups such as humid, warm and noisy surrounding.

Being traditional, the price for a cup of black coffee is around USD0.40 in the cities. Whereas for a cup of coffee in Starbucks cost almost USD3.00 but it is still cheap compared to the same coffee in the States of America. But then, the business in Starbucks is doing very well.

As an entrepreneurs, you may be wondering what make Starbucks so successful? What is that in Starbucks attracts customer who are willing to pay for a cup of coffee almost 8 times the price of a local coffee shop? Why are so many locals take coffee at Starbucks?

For the last few weeks, I paid attention to Starbucks with an objective to draw factors that may fit into the SWOT Analysis Template. I like to share with you my conclusion as follows:-

Strengths

  1. All Starbucks outlets are located either in shopping mall or new commercial complex
  2. All their staffs are English spoken (and other dialects)
  3. All Starbucks outlet are WIFI ready for Internet connection
  4. Starbucks coffee has consistent quality
  5. Staffs are courteous and customer service is excellent

Weaknesses

  1. Starbucks coffee is pricy
  2. Seating tables are small
  3. Crowded during lunch and dinner hours

Opportunities

  1. Younger generation of locals prefers Starbucks like of environment
  2. More local are seen to use Starbucks as a place for sale promotion or business discussion
  3. More younger generation like to take different type of coffee

Threats

  1. Economy slowdown

(Maybe there are more threats but I could not witnessed it )

I travel frequently to major cities of Malaysia and performed the research with not less than 10 Starbucks outlets. Al the four factors of SWOT Analysis are real and it may coincides with other publications. Nevertheless, it reflect the analysis as real as I could explored and it may be used as a academic case study for Strategic Planning.

Disclaimer: The above SWOT Analysis was performed in the interest of testing the SWOT Analysis Tool for Strategic Planning. The findings is strictly to be sued for academic reference only and it does not represents the view of Starbucks Coffee Company. I deny any liabilities in the event that it is used for your own coffee shop business venture.

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