Strengths, Opportunities, and the Prioritization of External Factors
SWOT analyses can help companies prepare for various issues, accentuate and implement strengths and opportunities, and address weaknesses. Businesses have multiple opportunities that vary on the basis of market attractiveness and the time of execution. Due to their high number, they need to be prioritized by means of a market attractiveness grid (OnStrategy 3, 2021). Opportunities, unlike strengths, are external things that can be indirectly affected but not entirely altered (OnStrategy 2, 2016; OnStrategy 3, 2021).
In regard to this aspect, the Starbucks management needs to think about how it could benefit from opportunities and which of them are more stable and helpful than the others. From my point of view, I would consider the expansion of beverage markets by means of including ready-to-drink coffee as a best bet, as opposed to something more urgent, because the demand seems to shift from increasing to decreasing and backward (OnStrategy 1, 2021; Starbucks SWOT Analysis, 2020). Moreover, I would pay attention to the demand for such drinks in the current environment, which may affect the sales of the beverage.
Addressing Internal Weaknesses and Adapting Strategies for Foreign Markets
Weaknesses are a serious, albeit controversial, aspect of the analysis. Many people overaccentuate strengths while omitting weaknesses, which is something that I should not do (Professor Wolters, 2019). I must know about and address them so that my business can be successful and improve in some aspects. According to the Starbucks SWOT analysis from 2020, one of the company’s weaknesses is overreliance on the US market. This issue implies that expanding Starbucks abroad would be more beneficial.
In order to enter foreign markets, I would research the supply and demand of foreign countries. It is crucial to mention that weaknesses, unlike opportunities and threats, are internal and can easily be affected and influenced. This means that I can actually take the necessary measures to overcome them for the sake of the success of the business.
Many businesses are aware that when expanding abroad, they need to review what is and is not popular in these locations. This means that the same strategies that they use for their home country can be proven to be ineffective, if not entirely damaging, for sales.
For example, if Spain or Japan has a high demand for cappuccinos, I would sell them more frequently in these areas. However, if a particular beverage is not popular, I will either make it optional or eliminate it altogether from the country’s representative of our business. That way, I can identify what may and may not work for it and put it to good use while considering the possible consequences and implications that may follow.
Identifying and Preparing for External Threats
Threats are yet another crucial part of a SWOT analysis. Just like opportunities, they are external and can only be influenced indirectly. The idea of this counterpart is to review the issues that could occur and the problems one needs to prepare for in the future. One of the threats is the increase in coffee bean prices due to natural disasters. Unfortunately, I cannot prevent or control these instances from occurring, which requires me to prepare for such a case.
To monitor weather disasters, I could keep myself informed about the weather forecasts in countries where coffee beans are produced. Moreover, I could read about the patterns of such disasters in these areas, such as the season when they usually occur and how severe they are. That way, I will be able to prepare myself for the increase in prices that will inevitably arise and find appropriate solutions for this occurrence.
References
OnStrategy 1. (2021). A tool to prioritize opportunities. YouTube. Web.
OnStrategy 2. (2016). How to perform a SWOT analysis. YouTube. Web.
OnStrategy 3. (2021). How to use SWOT analysis. YouTube. Web.
Starbucks SWOT Analysis (2020).