Strengths Global presence.(the company operates about 8500 retail store locations) A disciplined innovator (new frappucino blended beverages, iced shaken,etc) Increase in revenues and profits. (Annual growth rate of 25% from fiscal 00-04) Clustering of company units.(pedestrians and drivers) Weaknesses Reliance on US Market. (85% of its revenue come from its domestic US market) Reliance on beverage innovation. (An important long term risk to the company?s stock is a lower valuation caused by a slowdown in US sale store growth.) Lower revenues and income per employee. (the company generates lower revenues and income per employee as compared to the industry average) Lower returns on equity than peers.(The company?s five year average returns on equity have been lower than the industry average) Problems in some international operations.( The company has faced problems of expansion:Japan, Israel) Opportunities.
Growth in coffee market (the coffee sector will grow a 41%) New product.
(the company is targeting 15,000 international stores in the next few years) Threats Volatile coffee markets. (the supply and prices of the coffee experience high volatility) Rising dairy costs.
Slowing US retail sales.(If current growth continues, saturation levels within the North American retail division will be reaches within five years) Competition.