Businesses can flourish in such an environment. For import the trade laws should not be strict so that the company can maintain good relationship with the countries as well as bring in the coffee easily. The third political imperative, which Starbucks faces, is the regulatory pressures within its home market in the United States because of greater scrutiny of the business processes that multinationals based in the US are now subject to.
The company had yet another great financial year. 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.
Starbucks Coffee Company So Starbucks has to be very careful while pricing looking at the consumption rate of market. Operating efficiency and strong growth leading to superior financial performance.
The company introduced Wi-Fi capabilities in its outlets already. Consumers in the US are also becoming more and more conscious of ethics. However, studies have shown that consumers instead of cutting down Pest swot analysis of starbucks their coffee consumption are shifting to lower priced alternatives which is an opportunity for Starbucks.
Other socio-cultural factors to focus on are: Starbucks is trying their best to minimize the environmental impact, tackling of climate changes and inspiring others as well to do the same and joining of non-governmental organizations. 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. Number of Starbucks locations in China 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.
They are trying to find the new technologies to better serve the customer. It will expand consumer base to include the buyers from the lower and the middle-income tiers. Starbucks is especially cautious regarding ethics and legal compliance. It is an era of technology and technological factors affect the profitability of any business.
Product safety regulations opportunity GMO regulations outside the United States opportunity Increasing employment regulation threat Starbucks has opportunities to improve its performance by satisfying product safety regulations and regulations on ingredients from genetically modified organisms GMOs.
This is an added value to the brand. In various nations there can be a situation of rapid fluctuation. 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.
It is working to bring all its stores to LEED building standards and to approach their design and maintenance in a manner that is inclusive of its environmental efficiency goals.
Internet is important to the consumers.
Starbucks financial report Figure 3. In the recent years, it increased its investment in marketing and whether traditional methods or digital marketing, it is investing millions to improve its brand presence.
Some other factors to consider are: As Starbucks Imports coffee from various countries so they really have to be aware of changing imports laws which could hinder the importing. 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.
It has affected most global brands deeply. The firm sources much of its coffee beans from developing countries. This part of the SWOT analysis of Starbucks Coffee Company identifies external strategic factors that impose challenges to international expansion and market penetration.
It should also stay alert about introduction of caffeine production and consumption related policies and regulations by health authorities. Across the globe, people and governments are favoring the brands that favor the environment. Impacts of Political Factors on Starbucks The main political factor is about sourcing the raw materials.
It also affects the cost of raw material and labor costs. The coffeehouse chain business faces issues such as competition, imitation, and social trends that oppose international players in local markets.SWOT Analysis of Starbucks (6 Key Strengths in ) Ovidijus Jurevicius | June 5, 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.
Starbucks PESTEL Analysis Starbucks is the leading Coffee house chain in the world with its more than 22, stores running worldwide. While it is the largest Coffee brand globally, it is also the most successful one. SWOT Analysis of Starbucks (6 Key Strengths in ) Ovidijus Jurevicius | June 5, 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.
Find the latest and comprehensive SWOT & PESTLE Analysis of Starbucks, a popular coffee house chain based in the United States. PESTLE Analysis of Starbucks Introduction The macroeconomic environment that Starbucks operates in is characterized by the ongoing global economic recession.
It is an extended version of PEST analysis. Other forms of this tool are PESTEL, STEEP, and STEEPLE.
The acronym PESTLE stands for 6 factors which affect the business. The factors are: Political; Economic; Social; Technological; Legal; Environmental; In this article, I am discussing the PESTLE analysis of Starbucks.Download