When using SWOT analysis for a certain corporation, it is important to be realistic about the strengths and weaknesses to help

distinguish where the company is today, and where it could be in the future. The strengths and weaknesses are called internal factors, while opportunities and threats are called external factors. Strengths are the assets that boost profitability Strengths can be either tangible or intangible resources. Resources and capabilities distinctive competencies are main strength of the Starbucks.

Strengths- Strengths are the qualities that enable us to accomplish the organizations mission. These are the basis on which continued success can be made and continued/sustained.. These are what you are well-versed in or what you have expertise in, the traits and qualities your employees possess (individually and as a team) and the distinct features that give your organization its consistency. Strengths are the beneficial aspects of the organization or the capabilities of an organization, which includes human competencies, process capabilities, financial resources, products and services, customer goodwill and brand loyalty. Examples of organizational strengths are huge financial resources, broad product line, no debt, committed employees, etc. the strength of the starbucks are Starbucks is a renowned organization. Powerful brand in the coffee industry (Starbucks Experience). Top 50 of Fortunes Worlds Most Admired Companies List. The firms stores (retailer as well as licensed) generated approximately US$ 10.4 billion revenue in the fiscal year 2008. It has a total of approximately 16,706 stores, of which company operated stores are 8,850 and licensed stores are 7,856 (as of Dec 2009). It has globalized its operations and is operating in approximately 50 countries.

 It is listed in the Fortune 500 list of companies, due to the respectable environment and value of the workforce that the employers provide. Ethical values hold critical importance in its success. Product diversification exists as a strong force in which the essence and core of the business is coffee (more than 30 blends), alongside are the beverages, fresh baked food, and they also provide merchandize. Locale of the stores has high visibility, and they are accountable for attracting customers. It is the market leader with the highest share in the coffee industry also in terms of market capitalization. It has a strong Board and also has a strong financial foundation. Brand is associated with high quality coffee and unforgettable customer experience i-e the Starbucks Experience. Specializes in coffee, and due to the immense impact it has in the industry, it achieves economies of scales easily.

Weaknesses- Weaknesses are the qualities that prevent us from accomplishing our mission and achieving our full potential. These weaknesses deteriorate influences on the organizational success and growth. Weaknesses are the factors which do not meet the standards we feel they should meet. Weaknesses in an organization may be depreciating machinery, insufficient research and development facilities, narrow product range, poor decision-making, etc. Weaknesses are controllable. They must be minimized and eliminated. For instance - to overcome obsolete machinery, new machinery can be

purchased. Other examples of organizational weaknesses are huge debts, high employee turnover, complex decision making process, narrow product range, large wastage of raw materials, etc. So every company has the weaknesses so Starbucks also have some weaknesses they are It has a reputation that defines innovation and creativity, but it is also known for a fact that too much innovation may alter the course of the firm i-e it may lose the originality. The organization has expanded business risk because of the fact that it has spread most of its wings in the U.S. Overly dependent on a single product line (coffee) as a competitive edge. Internal business focus is overlooked due to the expansion factor. Number of increasing competitors in the market. Product pricing is very expensive, even if high quality is regarded. It has closed down many of its outlets due to numb sales in many regions. Management is cross-functional.

Opportunities- Opportunities are presented by the environment within which our organization operates. These arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable. Organizations can gain competitive advantage by making use of opportunities. Organization should be careful and recognize the opportunities and grasp them whenever they arise. Selecting the targets that will best serve the clients while getting desired

results is a difficult task. Opportunities may arise from market, competition, industry/government and technology. Increasing demand for telecommunications accompanied by deregulation is a great opportunity for new firms to enter telecom sector and compete with existing firms for revenue. Now the staebucks opportunities are New markets are available that are ready to be exploited such as India and Nations in the Asia Pacific. Co-branding with other renowned giants of food or beverage industries. It can also create new distribution channels regarding delivery service. It can exploit distribution agreements to minimize costs. Brand extension is also a factor that can be further developed into both food and nonfood commodities. To develop its Customer Relationship Management system, it can achieve high worth regarding its potential customers and greater customer loyalty. The value chain process can still be made efficient (procurement to supply chain to distribution). It should introduce fair trade products and become profitable to farmers in order to provide itself with more customer loyalty and positive public opinion. It can also sell whole bean in the super markets

Threats- Threats arise when conditions in external environment jeopardize the

reliability and profitability of the organizations business. They compound the vulnerability when they relate to the weaknesses. Threats are uncontrollable. When a threat comes, the stability and survival can be at stake. Examples of threats are - unrest

among employees; ever changing technology; increasing competition leading to excess capacity, price wars and reducing industry profits; etc. Starbucks threats are Lack of ownership of coffee farms can lead to price fluctuations Uncertainty remains as to something more appealing might become the next favourite for the customers, and coffee may get replaced. Many entrants and copy-cat brands are a serious threat to the brand. Being established widely in the U.S., it has a serious threat to face if the U.S. market faces saturation. Volatility of pricing in the different countries. Farmers treated poor brings a negative image regarding the brand that affects the loyalty level of the customer. Trends that are creating barriers to the consumption of coffee due to the level of caffeine it contains. Cultural as well as political problems in many foreign countries. Cost of procurement of the raw material rising, also exchange rate changing unfavorably 1Increasing coffee and dairy prices
Intense competition in the specialty coffee beverage business Unfavorable economic conditions that lower the demand for expensive bever ages Community resistance to store expansion The possibility that the demand for specialty coffee is a fad Diverging from the Starbucks experience Further diversification of fast food restaurants that cuts into market share