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Strengths
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Established name brand that is identified with reasonable to cheap pricing and bargain pricing. Wal-mart is a store that most individuals when they are on a low budget and still want to buy what they set out to buy - visit. Wide network of stores and therefore it is accessible to all types of individuals whether they are of wealthy means or not. The organization is able to buy in bulk and gain huge bulk discounts that are not available to other organizations and is able to pass on the discounts and pricing benefits to the customers thus further solidifying its reputation as a bargain store The organization deals in all types of goods from clothes to electrical items, from jeweler to garden equipment and therefore caters to a wide range of individuals and needs.

Weaknesses
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In the last few years the organization has faced much litigation from employees accusing it of unfair employment activities especially from its female workforce that has given the organization a bad reputation as an employer. The organization has also earned much negative publicity for its strong arming tactics and squeezing suppliers of profit margins by threatening to take its business elsewhere. The goods that are sold by Wal-mart from its Chinese suppliers in the past year have been marred by many different cases of health and safety hazards. The Chinese branches of Wal-mart have had difficulties in establishing themselves in the economy. The organization has been challenged in court over its strong-arm tactics of trying to suppress the unionization of its American workforce. The organization has to allow its Chinese workforce to unionize and the governmentbacked workers federations control the unions.

Opportunities
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The current economic crisis has decreased the disposable income of many individuals and thus has caused many individuals and households to lower their expectations and to shop for bargains, thus Wal-mart stands to gain in such a situation. The inflation in the economy is on the decline and the economy is on the brink of deflation thus it may mean that Wal-mart is able to provide its customers with increased bargains. Many retail organizations are going out of business due to the reduction in disposable incomes. This can help Wal-mart by increasing its customer base due to the bargains that it can provide its customers. Due to the cheap rate that the organization is able to buy its products from suppliers, it is able to provide customers with even bigger bargains to encourage them to shop at Wal-mart.

Threats
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The big name retailers such as M&S are giving having huge sales such as 50% off sales; this is difficult for Wal-mart to compete with, as its profit margins are not that great on each unit. The reduction in disposable income of customers and the looming recession and fears of job losses have caused individuals to curtail their shopping and this is a huge threat to Wal-mart, which relies on consumer spending.

Starbucks Corporation
Strengths:
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Starbucks is No. 1 specialty coffee retailer of - in terms of market share and market capitalization. (1997, 4596.6 million and sales growth 20.9%)[1] It is a global organisation with 16,000 coffee shops in 15 countries world-wide.[2] Strong brand image associated with high quality coffee and excellent customer service - The Starbucks Experience . Extensive store network, 8,500 shops are owned by Starbucks directly. The company franchises and licenses 6,500 shops. It has developed excellent skills in franchise management. Due to its specialism in all things coffee - it achieves high buying volumes - scale economies and utilizes international sourcing, some from fair trade suppliers. Committed workforce, one of Fortune Top 100 Companies to Work for[3]

Weaknesses:
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Starbucks is a premium brand commanding premium prices. As competitive pressures increase, the company could be undercut by lower price rivals such as McDonalds or Costa Coffee. Starbucks is seen as an American Global , possible perception that big American chains are trampling on national cultures, Starbucks was trampling on Chinese culture [4]. ver-dependency on coffee and coffee related products. US based company, focus on the US domestic market. Reputation with pressure groups. Criticized for not using more Free trade products[5].

Threats:
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Possible saturation in the coffee, caf market. In the US, 600 underperforming companyowned stores were closed[6]. Consolidation on the high street, growing competition from national brands and new entrants, aggressive marketing (price wars, promotions), putting pressure on profit margins. Companies seek cost savings and new way to differentiate to retain customers. Several activist groups maintain websites criticizing the company s fair-trade policies, labour relations, and environmental impact[7].

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Recession or downturn in the economy affects consumer spending, with less disposable income to spend. Consumers defect to lower price venues and competitors. Raw material cost rising - Starbucks is exposed to rises in the cost of coffee, labour and dairy products, and adverse changes in exchange rates[8].

Opportunities:
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Significant opportunities exist, especially outside domestic US market for joint ventures. Starbucks could overcome planning restrictions, reduce costs through co -locating at supermarket chains, pubs & restaurants. Product range diversification into greater food ranges and non-food items. The company has experimented with warm sandwich lines, and I-tunes (music link)[9]. Also, sold music CD s and linked with clubs (e.g. book clubs) etc. Licensing its name (e.g. ambient coffee through supermarkets) could provide new streams of revenue[10]. Through CRM and database marketing it could target its high net worth customers and build greater loyalty with customer base. The introduction of loyalty schemes such as Starbucks Card, free re-fills and technology (free downloads of music) provide a competitive edge to its value proposition.[11] Continued focus on improving efficiency and effectiveness in the organisation, from procurement, to supply chain to customer service delivery[12]. Become more of a socially responsible brand. Better public relations activity, introducing more fair trade products, better distribution of profits to farmers and ethical sourcing practices.

[1] Starbucks Corporation, http://www.hoovers.com/starbucks/ ID__15745 /freeuk-cofactsheet.xhtml

[2] Starbucks Corporation, Annual Report 1996 [3] http://search.forbes.com/search/find?MT=starbucks [4] International Business 6e by Charles W. L. Hill, McGraw Hill [5] http://en.wikipedia.org/wiki/Starbucks [6] Starbucks Downside, Wall St Journal, 1 July 2008 [7] http://en.wikipedia.org/wiki/Starbucks [8] Bennett, R (1996) International Business: Pitman Publishing [9] Starbucks Annual Report, 2006 [10] Starbucks Annual Report, 2006 [11] Starbucks Corporation, Annual Report 1996 [12] Johnson and Scholes (1999) Exploring Corporate Strategy, Prentice Hall