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Costa Coffee SWOT Analysis

Published by MBA Skool Team in Food & Beverages category Last Updated: June 02, 2023Read time:

Here is a detailed SWOT analysis of Costa Coffee covering strengths, weaknesses, opportunities and threats.

Costa Coffee Strengths

  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

Above are the strengths in the SWOT Analysis of Costa Coffee. The strengths of Costa Coffee looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.

Costa Coffee Weaknesses

  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

These were the weaknesses in the Costa Coffee SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.

Costa Coffee Opportunities

  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

Above we covered the opportunities in Costa Coffee SWOT Analysis. The opportunities for any brand can include prospects of future growth.

Costa Coffee Threats

  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

The threats in the SWOT Analysis of Costa Coffee are as mentioned above. The threats for any business can be external factors which can negatively impact its business.

Hence this concludes the Costa Coffee SWOT analysis.

About Costa Coffee

The table below gives the brand overview along with its target market, segmentation, positioning & USP

Costa Coffee Overview
Parent Company

Coca Cola Company


Coffee joints


Food & Beverages

Tagline/ Slogan

We make it better


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

Target Market

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 which comprises of MBA students, management professionals, and industry experts. 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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