• Marketing and Sales: The biggest strength of Starbucks is that their marketing department has been able to add value for the consumers over a number of years. Their strategy of expanding into different corners of the world has enabled them to make great profits. They have relied less on the traditional means of advertising and have innovated new ways for prompting the brand which have proved extremely successful.
• Customer Service: Starbucks have been able to maintain its position in the market due to the extraordinary level of customer service that it offers. Starbucks also aims to develop awareness in the customers about coffee.
• Finance: Starbucks has retained its strong financial position over a number of years. The company generated a little over $5000 million last year which shows its healthy financial status.
• Human Resource Management: The most valuable resource of Starbucks is their workforce. The employees are treated as partners. This helps in motivating the workforce which eventually leads to better results.
• Strong ethical values
• Global presence: The Company is recognized internationally and has a very good reputation all over the world. There are more than 16,000 stores worldwide.
• Beverage Innovation: the company is driven by innovation. The company can however collapse if they are unable to innovate.
• Reliance on the US market: More than 75% of the stores are located in US. This is a major weakness because it increases the risk that it would underperform if the US economy is suffering from some sort of crisis.
• Level of employee efficiency is low.
• International Problems: the company is facing numerous problems in expansions into international markets.
• Expansion: the company has the resources to expand into many other countries which can help them in earning more profits.
• Co-branding: Co-branding can help them into leveraging the reputation of the partner in the local markets.
• Growth in the Coffee Market: Coffee market globally has been growing rapidly. This can provide a great opportunity to Starbucks to increase their profit margins.
• Rise in Costs: the costs of the materials related to coffee have been increasing in the past few years which have affected the prices.
• Competition: Starbucks face competition from a wide range of competitors.
• Volatile Market: the nature of the coffee market is quite volatile.