Starbucks Is One of the Best Known Coffeehouse Chains in the World

question 38

Essay

Starbucks is one of the best known coffeehouse chains in the world. Each store sells a variety of innovative products to complement the array of coffee choices available. However, 75% of current stores are located in the United States and the expensive nature of the coffee leaves Starbucks vulnerable to changes in consumer spending behavior (such as recessions). Recently Starbucks has begun initiatives to sell its specialty coffee beans for home use, presenting a chance for a large increase in revenue and diversification. However, Starbucks faces fierce competition seeking a piece of its lucrative market share and the threat of consumer behavior changes, given its reputation rides on a singular product. Perform a SWOT analysis for Starbucks.

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Definitions:

Currency Control

Government policies or regulations that restrict the exchange of the domestic currency for foreign currencies.

Fixed Exchange Rate

A government or central bank policy that pegs the country's currency to another currency or to a reference value, such as gold, and does not allow it to fluctuate freely in the Forex market.

Extremism

The holding of extreme political or religious views and the actions taken to support or achieve them.

Trade Control

Government-imposed restrictions on the free exchange of goods and services between countries, including tariffs, quotas, and import licenses.