View Starbuck's SWOT chart

Strengths
Weaknesses
· Starbucks is the leader in the coffee market
· Product diversification
· 16,635 stores worldwide, including 11,068 in the U.S.
· Company operated retail stores and licensees
(no franchises)
· High brand equity
· Operating in 40 countries worldwide.
· approx 13,000 employees; Valued and motivated
employees, good work environment
· Financial conditions of the company are good
· Convenient locations like library, shopping malls, etc.
· Customer service is excellent
· High brand awareness
· Starbucks making their business more environmentally
friendly
· Customer base loyalty
· Product is the last socially accepted addiction
· Good relationships with suppliers
· Size
· High operating cost
· Lack of internal focus (too much focus on expansion)
· Ever increasing number of competitors in a growing market
· Self-cannibalization
· Closed 900 stores since 2008
· Starbucks have less control over stores outside the U.S.
· Product pricing (expensive compared to competitors)
· Protest against the company on different issues

Opportunities
Threats
· Emerging international markets
· Product diversification
· Co-branding with other food manufactures
· Whole bean sales in supermarkets
· New distribution channels (delivery)
· Brand extension
· New products (Via)
· Current recession impacts the sales
· Competition (restaurants, street carts, supermarkets,
other coffee shops, other caffeine based products)
· US market saturation
· Coffee price volatility in developing countries
· Negative publicity from poorly treated farmers in
supplying countries
· Consumer trends toward more healthy ways and away
from caffeine
· Fragile state of worldwide production of specialty coffees
· Alienation of younger, domestic market segments
· Corporate behemoth image
· Cultural and Political issues in foreign countries
· Labor Unions issues in US and international countries
· Variation in coffee prices in developing countries