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SWOT Analysis

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SWOT analysis

Is a strategic planning method used toevaluate the Strengths, Weaknesses ,Opportunities , and Threats .

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Strengths

• Characteristics of the business or team that

give it an advantage over others in theindustry.

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Strengths can be….

• Valuable physical assets• Valuable human assets

• Valuable organizational assets• Important competitive capabilities• Positive brand recognition

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Weaknesses

Factors which can detract a company'sabilities to attain goals.

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"pportunities

• #$ternal chances to ma%e greater sales or profits in the environment.

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Opportunity can be…

• & high profile event (mar%eting opportunity)• & gap left by a failed competitor

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Threats

• #$ternal elementsthat can place anorganization at ris%.

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American University ofBeirut

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Strategy Formulation

Opportunities (O) SO Strategies

ST StrategiesThreats (T)

Strengths (S) Weaknesses (W)

WO Strategies

WT Strategies

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American University ofBeirut

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Strategy Formulation

• SO Strategies * !se strengths to ta%e advantage ofopportunities

• WO Strategies * "vercome wea%nesses to ta%eadvantage of opportunities

• ST Strategies * !se strengths to avoid threats• WT Strategies * +inimize wea%nesses and avoid

threats

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Strengths Weaknesses• tarbuc%s Corporation is a very profitable

organization, earning in e$cess of - // millionin 0//1.

• tarbuc%s was one of the 2op 3// Companies in0//4.

• tarbuc%s e$perience• 5argest coffeehouse chain in the world• #mployee management

• tarbuc%s is well %nown for new product

development and creativity. 6owever, theirinnovation may falter over time.

• 7egative publicity• Product pricing

Opportunities Threats• In 0//1 the company created a C8 burning

service in their anta +onica (California ! &)cafe where customers create their own music. 9

• 7ew products and services that can be retailedin their cafes, such as Fair 2rade products. 9

• 2he company has the opportunity to e$pand itsglobal operations. 9• Co branding with other manufacturers of food

and drin%.

• :ho %nows if the mar%et for coffee will grow andstay in favour with customers, or whether anothertype of beverage activity will replace coffee in thefuture; 9

• tarbuc%s are e$posed to rises in the cost of coffee

and other products.• Increased competition from local cafes andspecialization of other coffeehouse chains

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“Starbucks” SWOT Analysis

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Strengths Weaknesses• 7i%e is a very competitive organization. 9

• an%ed in top three for climate friendlycompanies9

• 7i%e is strong at research and development. 9• 7i%e is a global brand.• 5isted among 4/ most innovative companies.

• 7i%e is focused on its footwear business, which

can be somewhat ris%y. Considering that mar%ettrends change and most companies sustainthemselves through a product diversificationstrategy.

• 2he retail sector is very price sensitive. 7i%e doeshave its own retailer in 7i%e 2own. 6owever,most of its income is derived from selling intoretailers

Opportunities Threats• Product e$pansion with more concentration in

sunglasses, sportswear etc. which gives high profit. 9

• 2he business could also be developed upon its

strong global brand recognition.• tepping into the line of economy andincreasing pro

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e!erences"

• http*==www.mbas%ool.com• http*==www.mar%etingteacher.com

• https*==en.wi%ipedia.org=wi%i=7i%e,>Inc.• http*==www.strategicmanagementinsight.com• https*==en.wi%ipedia.org=wi%i= tarbuc%s

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