SWOT Analysis for Costa Coffee

Costa-Coffee-SWOT-AnalysisCosta Coffee is a British multinational headquartered in Dunstable, Bedfordshire, and a wholly owned subsidiary of Whitbread. It is the second largest coffeehouse chain on the globe and remains the largest in Britain. Below is a SWOT Analysis for Costa Coffee.

Strengths:

  • Has products that boast of a very powerful retail
  • Has grown significantly over the years, and has experienced global expansion
  • Excellent brand name and brand visibility
  • Wide range of products
  • Reputation for value for money

Weaknesses:

  • Weak control of its empire, despite its IT advantages
  • Operates globally, but its presence is located in only relatively few countries worldwide, with very few number of stores in comparison to Starbucks
  • A lack in flexibility

Opportunities:

  • Taking over, merging, or forming strategic alliances with other coffee companies
  • Expanding through various consumer markets, such as those in India and China
  • Diversification of the company’s branches from large super centers to local-based sites

Threats:

  • The target of competition
  • Exposed to political problems in the countries where the company has operations
  • Intense price competition
  • The latest developments in information technology which could possibly change the markets
  • Threat from fast food outlets such as McDonalds

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