This Starbucks SWOT analysis reveals how the largest coffee chain in the world uses its competitive advantages to continue growing so successfully all over the world. It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. Starbucks has experienced a significant growth over the last few years and this trend should continue in the near future. The company still has lots of growth potential in new and current markets. The combination of all Starbucks’ strengths will allow the company to successfully compete with rivals and grow fast. Starbucks should further strengthen its digital capabilities, operating efficiency and maintain the current quality of ‘Starbucks experience’. All of these strengths will help the company in the future. As for the weaknesses, few of them can significantly damage company or its sales. Starbucks should diversify geographically and expand in Europe. Product diversification would also help to increase the revenue and eliminate strong dependence on coffee sales. Opportunities are well-known for Starbucks and the company already pursues some of them. Starbucks should really put efforts in becoming more of a dining place than just a coffee shop. That would open new opportunities and growth for the company. Threats do not pose immediate danger for Starbucks. The company uses various contracts and other agreements to shield against the volatile prices of coffee beans. Other threats can be easily eliminated in the future.

1. STARBUCKS CORPORATION
SWOT ANALYSIS 2020

2. SLIDE | 2
ABOUT STARBUCKS
Name Starbucks Corporation
Logo
Industries served Restaurants (Coffeehouses), Retail
Geographic areas served Worldwide (31,256 coffeehouses in 81 countries)
Headquarters Seattle, Washington, United States
Current CEO Kevin R. Johnson
Revenue (US$) 26.509 billion (2019) 7.2% 24.720 billion (2018)
Profit (US$) 3.599 billion (2019) 20.3% 4.518 billion (2018)
Employees 346,000 (2019)
Main Competitors
Caribou Coffee Company, Costa Coffee, Dunkin' Brands Group, Inc.,
Green Mountain Coffee Roasters, Luckin Coffee Inc., McDonald's
Corporation, Nestlé S.A. and many other restaurant chains and
coffeehouses.

3. Starbucks Corporation business overview from the company’s financial
report:
“Starbucks is the premier roaster, marketer and retailer of specialty coffee in the
world, operating in 81 markets. We purchase and roast high-quality coffees that
we sell, along with handcrafted coffee, tea and other beverages and a variety of
high-quality food items, including snack offerings, through company-operated
stores.
In addition to our flagship Starbucks Coffee brand, we sell goods and services
under the following brands: Teavana, Seattle’s Best Coffee, Evolution Fresh,
Ethos, Starbucks Reserve and Princi.”
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BUSINESS DESCRIPTION (1/2)
“ ”

4. “In addition, by leveraging the experience gained through our traditional store
model, we continue to offer consumers new coffee and other products in a
variety of forms, across new categories, and through diverse channels. We also
believe our Starbucks Global Responsibility strategy, commitments related to
ethically sourcing high-quality coffee and contributing positively to the
communities we do business in, and being an employer of choice are
contributors to our objective.
We are continuing the expansion of our various store formats, including Drive
Thru and express stores, to provide a greater degree of access and
convenience for our customers.”
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BUSINESS DESCRIPTION (2/2)
“ ”
“Our objective is to maintain Starbucks standing as one of the most recognized
and respected brands in the world.”

5. 1. Operating efficiency and strong growth leading to superior financial performance
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STRENGTHS
S W
O T
2019 was one of the best financial years in Starbucks’ history
Starbucks’ consolidated revenue 2013-2019 Starbucks’ operating profit margin 2012-2019
14.9 16.4 19.2 21.3 22.4 24.7 26.5
12.0
10.6
16.5
11.2
5.0
10.4
7.2
0
5
10
15
20
25
30
2013 2014 2015 2016 2017 2018 2019
Revenue (in US$ billions) Growth %
15
0
18.7 18.8 19.6
18.5
15.7 15.4
2012 2013 2014 2015 2016 2017 2018 2019
Operating profit margin %

6. 19,767 21,366 23,043 25,085 27,339 29,324 31,256
2013 2014 2015 2016 2017 2018 2019
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STRENGTHS
Starbucks’ consolidated store count
S W
O T

7. 1. Overdependence on revenue from the Americas segment
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WEAKNESSES
U.S. is the most important
market for the company,
generating at least
US$18.623 billion in sales
or more than 70.3% of its
total revenue.
Starbucks’ sources of revenue by country
S W
O T
U.S.
70.3%
International
29.7%

8. 1. Expansion of ready-to-drink (RTD) coffee products in the U.S. market
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OPPORTUNITIES
RTD coffee growth compared to the growth of the whole liquid beverage market in the U.S.
• Market for RTD coffees is
growing very fast;
• Starbucks could expand its
cold brew coffee or nitro
coffee portfolio to attract more
specialty coffee and millennial
consumers further
strengthening its market
position in RTD coffees.
S W
O T
6.2%
10.7%
16.5%
11.0%
12.3%
8.8%
-0.1%
2.2% 2.8% 3.4%
2.1% 2.2%
2013 2014 2015 2016 2017 2018
Ready-to-drink Coffee Whole Beverage Market

9. 1. The price of coffee beans could significantly rise due to major weather disasters
SLIDE | 9
THREATS
Starbucks profit margins
are dependent, to some
extent, on the price of
coffee beans, which over
the past several years
has been very volatile.
The price of coffee beans 2010-2020
S W
O T

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GET THE FULL
PRESENTATION
BUY STARBUCKS
CORPORATION SWOT
2020

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2020
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Accessed January 27, 2020
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company-recognition Accessed January 27, 2020
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