INTERNAL STRENGHTS

STRONG BRAND IMAGE – Starbucks have established a strong brand image by maintaining a level of
standard within the organization and their branches which delivered exceptional service and customer
satisfaction throughout their network of stores. Their strong brand image made their brand the standard
of good coffee.

STRONG FINANCIAL PERFORMANCE – Starbucks having a strong financial performance allowed them to
maintain the level of quality and growth of the organization.

FAST GROWING STORE NETWORK – Despite the emergence of new players in the coffee business
Starbucks was able to keep their position as the most known coffee shop in the market by expanding
their store network rapidly throughout the world.

EXTENSIVE INTERNATIONAL SUPPLY CHAIN – Starbucks maintained their supply despite of the limited
supply of certain species of coffee by sourcing them internationally.

ACQUISITIONS/POSSESSIONS – Starbucks made their system and standards under their license. This
allowed the company to maintain control of the branches operating outside of their management.

MODERATE DIVERSIFICATION – Every now and then, Starbucks releases a limited run coffee. This
allowed the company to know the flavors and blends of products they would add or remove from their
menu. Diversification of products in this way may not be as aggressive but it allowed the company to
minimize risk of losses in introducing a new product to the market.

QUALITY, TASTE, STANDARDIZATION – Quality, Taste, and Standardization could be considered as one of
Starbucks most valuable assets. The high standards and quality keep customers loyal to the brand.

GOOD AMBIANCE – Having a good ambiance is what keeps Starbucks apart from the competition.
Having a good ambiance attracts customers and increases the time of stay of customers which then
yields higher volume of sales.

STRONG CONNECTION WITH SOCIAL MEDIA – Starbucks produces timely and eye-pleasing content on
social media allowing them to connect to a lot of audience and maintain a strong presence.
EMPLOYEE TREATMENT – Employees at Starbucks are well trained and are compensated above the
average. As an employee this could be highly motivating and thus could improve performance and
benefit the company in return.

INTERNAL WEAKNESSES

HIGH PRICES - Since majority of the Starbucks' items are priced in the premium to high-mid range. As a
result, a large portion of the working class continues to be unable to afford Starbucks' prices.

IMITATION OF PRODUCTS - Starbucks does not have the most distinctive items on the market. This
makes product imitability relatively simple for other businesses.

VOLATILE SUPPLY COSTS - The third major weakness is the Volatile Supply Costs, since their prices are
directly tied to the cost of its coffee beans. Then it touts itself as a purveyor of fine coffee products, it
presumably purchases higher-quality beans, and when any increase occurs in procuring the raw coffee
beans themselves, that cost must be passed on to the consumer in some way. Continued increases in
coffee prices may result in even higher prices at the register, which could turn some customers away.

GENARILIZED STANDARDS FOR MOST PRODUCTS – Most of the items in the menu of Starbucks may not
always appeal to the local’s taste buds as these menus were created in a different settings and culture it
may not always please the local market.

UNHEALTHY CHOICES OR VARIETY - Since their products are high in calories and carbohydrates, they can
be dangerously unhealthy if eaten often. Consumers might simply choose a product with fewer
ingredients, but the company's credibility is built on flavored and sweetened products that cater to
consumers' taste buds.

RECALL OF PRODUCTS – Recall isn’t uncommon to Starbucks as they are usually serving people from
higher class and these customers often tend to have a high standard to their beverages. Losses due to
recalls could be material overtime.

DEPENDENCY ON THE US MARKET – Starbucks have been mainly dependent on its business performance
in the US since most of their branches outside the country are only franchise.
HIGH EMPLOYEE TURNOVER - High employee turnover happen within the company due to many of the
baristas are just using Starbucks as a stepping stone for their career and are looking for more growth
and opportunities once they have the necessary experience to take another job.

EUROPEAN TAX AVOIDANCE - the European Tax Avoidance that has made them faced criticism for its
failure to pay product taxes in some European markets. This caused a massive PR nightmare and could
have caused lasting damage to its brand reputation. While no lasting repercussions came that affected
the company at large, other worse missteps could cost the company significant social and financial
capital.