Caffe Nero SWOT Analysis

Caffe Nero SWOT Analysis

 

 

 

The following table illustrates Caffe Nero SWOT Analysis:

strengths 

  • High profitability
  • Rapid growth
  • Big market share
  • Number of outlets
  • Using brand name  to sell own branded products
  • Strong brand name
  • Geographical locations
  • Partnerships with other big brands

 

 

Weaknesses 

  • Not adoptability in case of change
  • Dependence on one supplier
  • Majority of the outlets are located only in UK, therefore risk is not well spread
Opportunities 

  • Internet café
  • Product diversification
  • Further 400-450 new stores until 2015
  • Future expansion plans

 

Threats 

  • Starbucks with 15000 outlets
  • Currency exchange rates
  • Bargaining power of supplier
  • Rising pressures from pressure groups for fairer prices for suppliers(fair trade)
  • Exposed to price rises in coffee
  • Future changes in trend, if customers may change from coffee culture to tea or something else