Second Cup - SWOT Analysis
Based on research, a SWOT Analysis for Second Cup reveals one of its strengths as its geographic presence in many regions and a weakness as slow sales growth. One of its opportunities is expansion into emerging markets and a threat is complicated supply chain.
- Second Cup's major strength is its geographic presence in different regions. It enables high business reach to the target market and easy accessibility. (Source 1 pcorroborated by Source 2)
- It has a wide product portfolio that allows customer base expansion. (Source 1 corroborated by Source 2)
- Strong online presence enables strong relationships with customers.
- Its strong financial position and health is good for further investments. (Source 1 corroborated by source 2)
- Its access to the suppliers for raw material at a lower cost improves the overall business efficiency.
- The locational advantage can improve its competitiveness in many ways, such as lower cost, improved accessibility or enhanced brand image.
- The efficient IT infrastructure can improve the operational efficiency.
- Competent and committed human capital can act as a powerful source of competitive advantage, particularly when business is service-oriented in nature.
- High product quality expands brand loyalty. (Source 1 corroborated by Source 2)
- Workplace diversity goes well with its intent to operate in international market.
- The horizontal and/or vertical integration can increase the control over whole value chain, resulting in improved access to raw material and quick product delivery to the final customer.
- An organization may own different intellectual property rights that can make the product offerings unique and exclusive, making it difficult for competitors to imitate.
- Environmentalist can criticize Second Cup for its poor waste management practices and inability to make its operations sustainable.
- Second Cup has poor inventory management practices.
- Due to its cash shortage or insufficient current assets it has poor liquidity position and overall business performance.
- The company's budget for marketing is insufficient, therefore expansion and retaining customers is difficult.
- Less expenditure on the research and development activities can weaken the company's performance due to poor local/international market knowledge.
- Poor customer service (such as inefficient customer complaint handling) can trigger the negative word of mouth about the business and affect business growth.
- The decision making takes too much time, causing expensive delays in introducing new products in the market. (Source 1 corroborated by Source 2)
- High job stress and consequent low workers’ morale is making its workforce less productive.
- The company's leadership style has the misalignment making the business organization directionless. (Source 1 corroborated by Source 2 and Source 3)
- Organizational culture is a big internal weakness due to strategic/business objectives misalignment.
- The changing customer needs toward healthier products. (Source 1 corroborated by Source 2)
- The development of new technologies to assist in production and delivery. Technology decreases costs, improve efficiency and result in the quick introduction of innovative products. (Source 1 corroborated by Source 2)
- Higher customers’ disposable income and bigger affluent customer base is an opportunity to offer more high-end products.
- E-commerce and online marketing can increase its sales.
- It can expand into emerging markets and niches. (Source 1 corroborated by Source 2)
- Developing countries like India and China have the biggest markets on the planet and are good revenue opportunities for the company.
- More globalization enables higher customer reach. (Source 1 corroborated by Source 2)
- Better relationships with schools, hotel chains, restaurants etc. can also increase the number of its consumers.
- Changes in regulatory system are a major treat as they enable potential lawsuit.
- Second Cup does not have enough skilled workers.
- High competition slows its expansion down.
- The deteriorating economic conditions affect business performance when they directly influence the customers' spending patterns and purchasing power. (Source 1 corroborated by Source 2)
- Higher inflation increases the cost of production and affects negatively the business profitability.
- The growing environmental sustainability trends act as a major threat as it has non-environmentally friendly products.
- Globalization makes it difficult for the company to adjust its offer to culturally diverse nations. (Source 1 corroborated by Source 2)
- Changing the offer to the healthier one brings more costs.
- Second Cup has a complicated supply chain and if any part of the chain fails that could mean more problems.