As they did not quit buying coffee, Starbucks should seek an opportunity here. Starbucks is already the number one premium coffee brand in the K-Cup category, and it hopes to further expand its market share in the coming quarters. It is also working to shrink its environmental footprint by increasing recycling and by reducing the waste related to cups and other types of packaging.
Its focus has remained on quality as well as ethics. Changing family patterns in USA and Europe Consumer preferences Changes in lifestyles of population The level of education of the population in local markets Changing values among population Impacts of Technological Factors on Starbucks Starbucks is in a good position to enjoy benefits of the emerging mobile wave.
Fluctuation in trade laws Coffee is a commodity which is often being imported from the other nations which have the suitable climate and environment for its growth.
Such an image can help reduce sociocultural opposition against the company. The other political imperative that Starbucks faces is the need to adhere to the laws and regulations in the countries from where it sources its raw materials. The constant global economic recession has dented the macroeconomic environment which Starbucks operates in.
SWOT analysis and implications. It is an era of technology and technological factors affect the profitability of any business. However, studies have shown that consumers instead of cutting down on their coffee consumption are shifting to lower priced alternatives which is an opportunity for Starbucks.
Even the consumers have expressed issues. It has created the brand image of an ethical brand that has gained global recognition.
Weaknesses The company is heavily dependent on its main and key input, which is the coffee beans and hence, is acutely dependent on the price of coffee beans as a determinant of its profitability. Our ability to vary the size and format of our stores allows us to locate them in or near a variety of settings, including downtown and suburban retail centers, office buildings, university campuses, and in select rural and off-highway locations.
This means consumers might reduce consumption partially but will not stop buying completely. We also sell a variety of coffee and tea products and license our trademarks through other channels such as licensed stores, grocery and foodservice accounts.
Now, since the world economy is back on track, consumer confidence has been boosted and spending has risen. This increase in demand of coffee increases when the coffee substitutes such as cold drink, water, juice, tea, shake prices increases and if there is increase in the income of the consumers.
Another important area where its environmental initiatives are focused is climate change. Starbucks store count Source: Starbucks Corp The political condition of Starbucks is not good as it should be.
The main reason for this is the fact that it operates in the Food and Beverages space which means that despite the recession, consumers cut down on the consumption to a certain extent and not completely. Therefore, the task before Starbucks is to lower costs and increase the value so that it retains its consumer base and attracts consumer loyalty.
Company Information — Starbucks Coffee Company.
The inflationary environment and falling profitability is causing a lot of stress. In relation, responsible sourcing emphasizes corporate social responsibility in the supply chain.
Subscribers interested in learning more about Starbucks should check out our full-page report in The Value Line Investment Survey. Local currency exchange rates Local economic environment in different markets Taxation level Impacts of Socio-Cultural Factors on Starbucks As already stated, Starbucks can offer cheaper products but it might have to sacrifice the quality.
The prices of these beans are typically very volatile. For example, through higher diversification, the company can reduce its dependence on its current industries, thereby improving overall revenue growth opportunities.
However, the situation is more complex for the ones operating in the global environment. A review of academic research from the last decade. Howard Schultz and Starbucks Coffee Company.
Before the initiation of any food sector, the government makes sure that the company is using right and ethical products for the production of the goods.
The internal strategic factors identified in this part of the SWOT analysis of Starbucks Corporation shows that the business has strengths that promote resilience through diversification and a global supply chain. Across the entire business, it has invested in technology in the other areas too to improve its capabilities and performance.
Legal compliance is an important requirement for businesses.We will address these issues by performing an easy-to-follow SWOT analysis of the company, evaluating its Strengths, Weaknesses, Opportunities, and Threats. The Business Starbucks is one of the premier roasters, marketers, and retailers of specialty coffee in the world.
Starbucks also has the opportunity to offer more of its products in recyclable packaging. Thus, in this part of the PESTEL/PESTLE analysis model, Starbucks Coffee has major opportunities.
Legal Factors. The legal factors in the PESTEL/PESTLE analysis model are the laws and regulations on business. PESTLE Analysis of Starbucks Introduction The macroeconomic environment that Starbucks operates in is characterized by the ongoing global economic recession, which has dented the purchasing power of the consumers.
SWOT Analysis Examples. Business Teacher has a range of SWOT examples to give you ideas for writing your own reports. A SWOT and PESTEL analysis of Starbucks. Print Reference this. Disclaimer: This work has been submitted by a student.
This is not an example of the work written by our professional academic writers. You can view samples of our professional work here. Download PPT for Complete Course on SWOT Analysis Total Slides: Starbucks is a globally recognized coffee and beverages brand that has rapidly made strides into all major markets of the world.Download