The SWOT analysis refers to the analysis of the internal environment of Starbucks against its external environment, which provides some relativity on how the management is progressing with the threats and opportunities of the external environment. Based on the table above, this shows that there are many strengths compared to weaknesses, and similar amounts of threats and opportunities. (Refer to Appendix 2 for SWOT Analysis Matrix).
Strengths. Some of the major strengths of Starbucks include (1) high numbers of stores nationwide and worldwide, (2) survivor of economic downturn, (3) strong brand image, (4) good strategy of clustering stores, (5) being free of debt, (6) have no nationwide competitor and (7) ahead of technology and keeps up to trends. These strengths indicate the stability of the business, which is a strong foundation for international business and globalisation.
Having a high number of stores, in strategic locations around metropolitan areas as well as highly visited areas serving a highly consumed beverage through all cultures and status is certainly an advantage. In addition, to minimize threats from competitors the domination of an area or building is very strong that gives consumers very little to choose from for a coffee break. Consumers choose Starbucks for their obvious strengths - good ambience, good service, good variety, strong brand image, availability, good quality coffee and other products.
In terms of advertising and promotion, Starbucks allocates about 1% of their total revenue for advertising and promotion. With less money allocated towards advertising fees, more money is spent towards strengthening their brand and passive advertising through clustering and locating itself in many and various places. Hence, consumers and potentia ...