SWOT Analysis of Starbucks Company

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Starbucks Company is one of the world’s foremost coffee companies. The company’s most major accomplishment is based on new strategies in its operations. This study aims to examine Starbucks’ internal and external aspects using a SWOT analysis. It also outlines how the organization may use its operational strengths to overcome its limitations by investigating possibilities for success and overcoming challenges. Then it would present a cover letter for a position in the Starbuck Company.

Internal Analysis

The firm’s internal analysis includes a section of the SWOT model that analyses some of the interior features that the corporation may adopt as strengths to manage its weaknesses.


One of the company’s assets is that it is one of the world’s largest coffeehouse chains, with an ever-increasing number of customers contributing to its expansion (Arisanti, 2021). It also has a broad worldwide supply network that aids in its operation. Furthermore, the corporation’s distinguishing feature is moderate business diversification, as evidenced by establishing subsidiaries such as Seattle’s Best Coffee and Ethos Water. These assets help it be more resilient by diversifying its operations and expanding its global supply chain.


Starbucks Company also has several flaws that hinder its operating capacity. For example, the corporation has high pricing points that enhance profit margins while decreasing product profitability (Baladjay et al., 2021). As a result, the approach limits the corporation’s market share. Furthermore, some of Starbucks’ products are readily duplicated, and local competitors may produce comparable things at a lower cost and get a larger market share. Starbucks’ development of several subsidiaries does not ensure a competitive edge over its competitors. Competitors in some of those subsidiaries may devise a low-priced product strategy to increase profits. The corporation’s product is easily imitated may not be a significant concern. The firm has a stellar reputation across the world. As a result, even if some of its competitors manufacture identical items, the firm retains a considerable market share due to its large number of loyal clients.

External Analysis

Starbucks’ external analysis examines the constant components that bring possibilities and risks to company growth and development.


Starbucks Company has several chances to grow its business. For example, the corporation can increase and expand its markets to increase revenue (Shtal et al., 2018). Furthermore, by boosting diversity, the company may reduce its dependency on its industries, improving revenue growth. The firm’s reputation gives a fantastic chance for the company to form an alliance or collaboration with other companies, boosting its profit.


Starbucks also faces several active threats. For example, rivals such as other coffee dealers or major restaurant chains may provide the same product at a lower price, diminishing the company’s market share (Dominik & Sakal, 2018). There is also product imitation, which mimics the appearance and feel of Starbucks’ items. There is also the risk of coffee bean costs rising regularly. The fluctuating cost of coffee beans causes changes in product prices, which annoys buyers.

Starbucks Company’s SWOT analysis highlights its potential for future success and some operational drawbacks. However, strategic management can significantly improve the company’s operations. Such management entails leveraging excellent brand image, diversity, and a global supply chain to compensate for disadvantages such as high price points and product imitability. There is also the possibility of capitalizing on its potentials, such as company diversification, cooperation, and market development, to combat success dangers such as copycat and low-cost coffee vendors. A suggestion to protect Starbucks’ brand by reducing copycat instances is to pursue aggressive innovation, such as uniquely producing their items. Unique items are difficult to copy, therefore rivals will have no opportunity. The company can also devise price strategies that would entice more customers. Bundle pricing approaches, for example, might effectively compete against competitors that provide equivalent items at a cheaper price. As a result, the company’s market share may be maintained, and hence its income can be increased.

Starbuck’s Cover Letter

  • You’re Address
  • Zip Code, City, State
  • Phone Number
  • You’re Email
  • Date of Submission
  • Name of Hiring Manager
  • Address of Company
  • Zip Code, City, State
  • Phone Number
  • Hiring Manager Email

Dear Name of Hiring Manager,

I am thrilled to be applying for a barista at Starbucks, recommended to me by [Regular Customer]. Given your store’s reputation for excellent customer service and handmade coffee, I’m thrilled to join your team and contribute my skills, knowledge, and passion.

With over three years of experience as a shift supervisor, I am skilled at educating other baristas and developing a communication channel between team members and management to deliver effective service during peak hours. While I would appreciate the opportunity to contribute my leadership skills to your store, my primary love is coffee. Sending clients away with a great beverage, from espresso-based drinks to pour-overs, is what makes me like my job more and more each day.

Starbucks has expanded into the retail market, offering wholesale beans and at-home grinding and brewing devices. I’m delighted to use my experience as a shop worker to help you meet your sales goals and share some coffee expertise with the community since I like discussing coffee ideas and practices with customers.

I’d love to meet you in person and demonstrate my abilities behind the café. In case of anything don’t hesitate to contact me by email or phone number to organize an interview as soon as possible. I’m looking forward to hearing from you. Regards


You’re Name


Arisanti, P. (2021). SWOT Analysis as a Basis for Peh Corner Coffee Shop Marketing Strategy. Judicious, 2(2), 164–167. Web.

Baladjay, M., Kharla, B., Cabrera, Leslie, M., De Leon, Lara, M., Jimenez, K., & Bianca, F. (2021). Starbucks Corporation A Business Case Study Analysis Presented to the Faculty of College of Business Education Technological Institute of the Philippines – Quezon City. Web.

Dominik, V., & Sakal. (2018). Company Analysis Of Starbucks Corporation. Web.

Shtal, Buriak, Ukubassova, Amirbekuly, Toiboldinova, Tlegen. (2018). Methods of analysis of the external environment of business activities. Repository.hneu.edu.ua. Web.

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BusinessEssay. "SWOT Analysis of Starbucks Company." January 12, 2023. https://business-essay.com/swot-analysis-of-starbucks-company/.