SWOT analysis for Costa Coffee

Weaknesses
1. Splendid brand name and brand visibility
2. Reputation for quality that is actually worth the money
3. Wide variety of products3
4. Quality of service is high4

1. Located in relatively few countries worldwide
2. Only few stores in each country
3. Because of high prices not available to all classes

Opportunities
Threats
1. Broaden their target market
2. Merging, taking over, or forming strategic alliance with other coffee companies9
3. Continuously expanding

1. Rising prices of coffee beans and dairy products
2. Supply disruptions
3. Increased competition from local cafes and other coffeehouse chains
4. Policy change

Conclusion

In my opinion, Costa Coffees SWOT analysis shows, that they have established a pretty strong enterprise. They have more strengths than weaknesses, and that is good. Of course, they could expand their coffee stores, as they are located in relatively few countries, and even there they are mostly concentrated in one region, so they would gain more customers. Also, they could adapt their prices so that this coffee would be more available for all social classes, but as their main target market doesn’t include lower classes and it is their policy, as they see themselves as luxury product providers, than that is their choice whether to do it or not.

Also looking at opportunities, they mostly results from their weaknesses and the way they can improve their weaknesses. They should overview this list, and then assess whether to use these opportunities and change their brand or stay the same, as their company is well-enough created. But if we talk about threats, the only way how to avoid them, is to develop a good system of flexibility, that would mean, that they should be ready for changes in market, policy, conflicts. They should be ready to be able to cope with these threats in any time and place. So, if they haven’t thought about these threats, they should overlook them and decide how they would deal with them if they would come true.