Cappuccino Wars - Swot Analysis

SWOT ANALYSIS

Strong Brand Image
Widespread

Exclusive

 US-Based Starbucks coffee bar giant.  In the Fortune Top 500 US companies.

 Fast rollout.  Over 15,000 coffee shops in more than 40 countries.

 Own roasting plant.  Low-calorie version Frappuccino iced drinks.

SWOT ANALYSIS

Inferior Quality and High Costs

Less food products

Negative customer experience

 Quality inferior as compared to Costa Coffee and Caffe Nero.  Most expensive

 Offered limited range of both indulgent and healthy eating options.

 No intimate experience.  Sterile places.  Evident smell of sandwiches. Some unfriendly staff.

SWOT ANALYSIS

Fair trade products Good Quality and Low Costs
 New products and services.

Customer relationship management

 Good tastes as ground coffee.  New instant coffee brand, Via. Cheaper price.

 Smaller expresso machines.  Hand made coffee.  Restoring aroma of coffee.  Loyalty card.  Wi-Fi  In-store music

SWOT ANALYSIS
Market condition

Market competitors
 Recession.  USA stores closed.  Slow expansion due to market saturation

Losing customers

 High quality coffee of competitors: Costa Coffee, Caffe Nero and McDonalds McCafe.

 Original coffee flavour disappeared.  Similar drinks available at cheaper price.

SWOT ANALYSIS OF STARBUCKS IN THE UK MARKET
Positives Negatives

Strengths
 Strong Brand image.

Weaknesses
 Inferior Quality and High Costs.  Less food products.  Negative customer experience.

Internal

 Widespread.  Exclusive / Uniqueness.

Opportunities
 Good Quality and Low Costs.

Threats
 Market competitors – Costa Coffee, Caffe Nero and McDonald’s McCafes.  Market condition.  Losing customers.

External

 Fair trade products.  Customer relationship management.

Maximizing the potential of Strengths and Opportunities

S
Strong Brand image

O
Provide a great work environment

Ability to produce different variety of