Starbucks Weakness Analysis

I choose a company called Starbucks because they are a coffee shop power house. They control more of the market than any other coffee place in the US. The consumable products that are made by Starbucks are coffees, teas, iced and hot drinks, smoothies, specialty and customizable drinks, cookies, croissants and so much more. They also have a line of products like reusable cups, mugs, gift cards and packaged coffees and teas. Not only do they have a significant market share, they also have a large market mix. Their main source of business comes from sales of beverages and food. The secondary source of business revenue is the sale of their accessory products mentioned before. Starbucks was founded in Seattle’s Pike Place Market where it opened

Places like Donkin Doughnuts or McDonalds serve coffee at much lower prices which causes some people to choose the lower price over the quality. Another weakness is the dependency on the suppliers. Any disturbance in the delivery can create an inconvenience for the customers and potentially cause Starbucks to lose some customers. Another dependency weakness is their source of business is solely structured on coffee based products. If one day there was a research liking coffee drinking with medical issues of some sort, that would cause Starbucks to completely run out of business. They corporate administration can also be a weakness because of its ridged

There is plenty of cheap coffee shop that steal Starbucks customers every day, but Starbucks is holding on strong to their loyal customers. Another reason why some people do not choose Starbucks is because of their advertising. People see Dunkin Doughnuts and McDonalds advertising so they chose them because people feel more comfortable with a company that shows them what they are about. If someone has never been to a Starbucks location they don’t know what to expect from that new place, but if that person saw an ad for a competitor shop, he/she would choose the competition. One other threat to Starbucks is the economy itself. If there was to be a crash in the market, people would become more aware of their spending, and probably cut down on expensive coffee drinks like the ones at