1. Starbucks Corporation is the largest coffeehouse company in the world with over 27,000 stores in 75 countries and annual revenue of $22.4 billion in 2017. 2. Starbucks has experienced strong financial growth in recent years due to operating efficiency and expanding globally. However, overdependence on the Americas market, particularly the US, leaves it vulnerable. 3. Ready-to-drink coffee represents an opportunity for Starbucks to attract more millennial customers, as the US market for RTD coffee is growing much faster than the overall beverage market. Threats include rising coffee bean prices from weather events that could squeeze profit margins.

1. STARBUCKS CORPORATION
SWOT ANALYSIS 2018

2. SLIDE | 2
ABOUT STARBUCKS
Name Starbucks Corporation
Logo
Industries served Restaurants (Coffeehouses)
Geographic areas served Worldwide (27,339 coffeehouses in 75 countries)
Headquarters Seattle, Washington, United States
Current CEO Kevin R. Johnson
Revenue (US$) 22.387 billion (2017) 5% 21.316 billion (2016)
Profit (US$) 2.885 billion (2017) 2.4% 2.818 billion (2016)
Employees 277,000 (2017)
Main Competitors
Caribou Coffee Company, Costa Coffee, Dunkin' Brands Group, Inc.,
Green Mountain Coffee Roasters, McDonald's Corporation, Nestlé S.A.
and many other restaurant chains and coffeehouses.

3. Starbucks Corporation business overview from the company’s financial
report:
“Starbucks is the premier roaster, marketer and retailer of specialty coffee in the
world, operating in 75 countries. We purchase and roast high-quality coffees
that we sell, along with handcrafted coffee, tea and other beverages and a
variety of fresh food items, through company-operated stores. We also sell a
variety of coffee and tea products and license our trademarks through other
channels such as licensed stores, grocery and national foodservice accounts. In
addition to our flagship Starbucks Coffee brand, we also sell goods and services
under the following brands: Teavana, Tazo, Seattle’s Best Coffee, Evolution
Fresh and Ethos.”
SLIDE | 3
BUSINESS DESCRIPTION (1/2)
“ ”

4. “In addition, by leveraging the experience gained through our traditional store
model, we continue to offer consumers new coffee and other products in a
variety of forms, across new categories, and through diverse channels. We also
believe our Starbucks Global Responsibility strategy, commitments related to
ethically sourcing high-quality coffee and contributing positively to the
communities we do business in, and being an employer of choice are
contributors to our objective.
We are continuing the expansion of our various store formats, including Drive
Thru and express stores, to provide a greater degree of access and
convenience for our customers.”
SLIDE | 4
BUSINESS DESCRIPTION (2/2)
“ ”
“Our objective is to maintain Starbucks standing as one of the most recognized
and respected brands in the world.”

5. 11.7 13.3 14.9 16.4 19.2 21.3 22.4
9.3
13.5
12.0
10.6
16.5
11.2
5.0
0
5
10
15
20
25
2011 2012 2013 2014 2015 2016 2017
Revenue (in US$ billions) Growth %
1. Operating efficiency and strong growth leading to superior financial performance
SLIDE | 5
STRENGTHS
S W
O T
2017 was one of the best financial years in Starbucks’ history
Starbucks’ consolidated revenue 2011-2017 Starbucks’ operating profit margin 2012-2017
15
0
18.7 18.8 19.6
18.5
2012 2013 2014 2015 2016 2017
Operating profit margin %

6. 17,003 18,066 19,767 21,366 23,043 25,085 27,339
2011 2012 2013 2014 2015 2016 2017
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STRENGTHS
S W
O T
Starbucks’ consolidated store count

7. Americas
70%
CAP
14%
Channel
Development
9%
EMEA
5%
Other
2%
1. Overdependence on revenue from the Americas segment
SLIDE | 7
WEAKNESSES
S W
O T
U.S. is the most important
market for the company,
generating at least US$16
billion in sales or more
than 71.5% of its total
revenue.
Starbucks’ sources of revenue by operating segment

8. 6.2%
10.7%
16.5%
11.0%
12.3%
-0.1%
2.2%
2.8%
3.4%
2.1%
2013 2014 2015 2016 2017
Ready-to-drink Coffee Whole Beverage Market
1. Expansion of ready-to-drink (RTD) coffee products in the U.S. market
SLIDE | 8
OPPORTUNITIES
S W
O T
RTD coffee growth compared to the growth of the whole liquid beverage market in the U.S.
• Market for RTD coffees is
growing very fast;
• Starbucks could expand its
cold brew coffee or nitro
coffee portfolio to attract
more specialty coffee and
millennial consumers
further strengthening its
market position in RTD
coffees.

9. 1. The price of coffee beans could significantly rise due to major weather disasters
SLIDE | 9
THREATS
S W
O T
Starbucks profit margins
are dependent, to some
extent, on the price of
coffee beans, which over
the past several years has
been very volatile.
The price of coffee beans 2007-2017

10. SLIDE | 10
GET THE FULL
PRESENTATION
BUY STARBUCKS SWOT
2018

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0000829224/f8c7bf9b-da8f-4ebd-bd2b-55f4abaa08fe.pdf Accessed May 13, 2018
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https://www.whitbread.co.uk/content/dam/whitbread/pdfs/investors/reports-and-presentations/annual-
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4. McDonald’s Corporation (2018). Form 10-K for the Fiscal Year Ended December 31, 2017. Available at:
http://corporate.mcdonalds.com/content/corpmcd/investors-relations/financial-information/sec-filings.html Accessed May 13, 2018
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juice&drink=iced-coffee&drink=iced-tea&drink=bottled-drinks&drink=brewed-coffee&drink=chocolate&drink=espresso&drink=frappuccino-
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