SWOT Analysis - Starbucks

Extract

[...] Starbucks figures Starbucks's revenue for fiscal 2020 was $ 23.5 billion, down from $ 26.5 billion the year before. The group has been rocked, like many, by the COVID19 crisis. Many stores were closed for several months around the world, severely limiting the group's turnover. The group tells its future franchisees that the initial investment in opening a franchise is around €500,000 per point of sale. II. SWOT Analysis of Starbucks Strengths Weaknesses One of the world leaders Criticized for its Good brand image environmental damage Company with strong social and Price positioning (higher environmental responsibility than its competitors) Very strong territorial network Little or no publicity Positioning in China Dependence on commodity Diversification of its product range and prices distribution methods Solid financial record, investment capacity Acquisitions Human Resources Management Loyalty program Opportunities Threats Emerging Markets Very competitive market New product lines, new COVID19 impact distribution methods Rising commodity prices Changing consumer behaviour, eating better A. [...]

[...] In the 2000s, Europe was conquered, and Starbucks increased its presence there. Starbucks now has around 15,000 stores, located in 60 countries, including Africa, since the early 2010s. Employees now number around 350,000. The vast majority of Starbucks revenue comes from the operation of its 15,000 owned cafeterias. Sales of brand licences contribute 11% to total revenue, with sales of raw products, such as packets of coffee beans for the remainder (around The United States represents more than 2/3 of its turnover. [...]

[...] The prices of hot drinks and snacks sold at Starbucks outlets are sometimes deemed too high by consumers, who may choose to avoid the brand or limit their consumption. Little or No Publicity Another essential point of the marketing mix is ​​the promotion or advertising of Starbucks. This is almost non-existent, with very few campaigns, no recourse to public figures (unlike its indirect competitor Nespresso, for example). Starbucks relies heavily on word of mouth and community spirit, but this complete lack of communication can confuse consumers and damage its brand image. [...]

[...] Very Strong Territorial Network Starbucks has more than 30,000 points of sale and continues to grow. Its territorial coverage is efficient, and it is easy to find a point of sale in industrialized countries. Positioning in China Starbucks realized early on how important the Chinese market was to its growth, despite its difficult access. The company has successfully opened a production plant there and expanded its points of sale for several years. Its presence there remains slight, but it is growing, and Chinese consumers are beginning to know and appreciate the brand, its products, its shops. [...]

[...] The return to offices and the resumption of social gatherings should necessarily have a significant impact on the sales made by Starbucks stores and should boost its turnover for the moment, which is in sharp decline compared to that achieved during the previous exercise. The threats identified do not seem able to compromise the brand, which enjoys an excellent image with its customers. Bibliography and references Starbucks lost $ 3 billion in first-quarter revenue due to coronavirus, Corporate News - Investir-Les Échos Bourse Starbucks revenue and income, itemised accounts, balance sheet and SBUX income statement - US8552441094 - Boursier.com. [...]