Published by MBA Skool Team, Last Updated: September 14, 2021
SWOT analysis of Costa Coffee analyses the brand by its strengths, weaknesses, opportunities & threats. In Costa Coffee SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Costa Coffee to benchmark its business & performance as compared to the competitors. Costa Coffee is one of the leading brands in the food & beverages sector.
The article below lists the Costa Coffee SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Costa Coffee SWOT Analysis:
For Costa Coffee, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.
Costa Coffee Strengths
The strengths of Costa Coffee looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Costa Coffee :
1. Costa Coffee is one of the leading coffee chain brands based out of UK
2. Costa coffee is present at more than 3000 locations worldwide
3. The company has a strong legacy since it was started in the year 1971
4. In 2019, the Coca Cola company had acquired the Costa Coffee company for $5 billion
5. The coffee chain offers a wide variety of products including coffee, milk shakes, cakes, sandwiches etc.
6. As a part of its product extension, Costa coffee started offering canned coffee which is available at several retail stores
7. The annual revenue of the brand is more than $1 billion
Costa Coffee Weaknesses
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Costa Coffee SWOT Analysis:
1. Costa Coffee is present in a limited number of countries as compared to some of its global competitors
2. Limited marker share growth owing to many substitutes available from competitors to local players at every location
Costa Coffee Opportunities
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Costa Coffee SWOT Analysis:
1. Acquisitions or forming strategic alliances with other coffee companies can help boost the business for Costa Coffee
2. Expanding in various consumer markets with a higher youth population who has a high purchasing power can be an opportunity for the company
3. Continuously expanding its menu and offer snacks & beverages based on local interests can attract a new set of customers
Costa Coffee Threats
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Costa Coffee are as mentioned:
1. The company has a threat from existing coffee chains and fast food outlets
2. Intense price competition means lesser margins and higher operating costs for Costa Coffee
3. Economic recessions or a pandemic can hurt the business as people reduce their expenditure
Costa Coffee Competitors
There are several brands in the market which are competing for the same set of customers. Below are the top 6 competitors of Costa Coffee:
Popular British coffee brand now going global with innovative products
Costa Coffee STP
People looking to go to have a coffee and snacks at a hangout place
Youth in the middle and higher income groups
The best coffee maker in the business
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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