Strengths
Weaknesses
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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
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· 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
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)