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Second Cup Case SWOT Analysis

Case Study Solution And Analysis


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Second Cup Case Study Analysis

The internal analysis and external of the company likewise can be done through SWOT Analysis, summed up in the Exhibition F.

Strengths

• Second Cup has an experience of about 140 years, making it possible for company to better carry out, in different circumstances.
• Nestlé's has presence in about 86 nations, making it a worldwide leader in Food and Drink Industry.
• Second Cup has more than 2000 brands, which increase the circle of its target customers. These brands consist of infant foods, pet food, confectionary items, beverages and so on. Famous brands of Second Cup include; Maggi, Kit-Kat, Nescafe, etc.
• Second Cup has large quantity of costs on R&D as compare to its competitors, making the business to release more innovative and healthy products. This innovation supplies the business a high competitive position in long term.
• After adopting its NHW Method, the company has done big amount of mergers and acquisitions which increase the sales development and improve market position of Second Cup.
• Second Cup is a widely known brand with high consumer's commitment and brand name recall. This brand loyalty of consumers increases the possibilities of simple market adoption of various new brand names of Second Cup.

Weaknesses

• Acquisitions of those service, like; Kraft frozen Pizza company can offer an unfavorable signal to Second Cup consumers about their compromise over their core proficiency of much healthier foods.
• The growth I sales as compare to the company's financial investment in NHW Method are rather various. It will take long to change the perception of individuals ab out Second Cup as a business selling healthy and healthy items.

Opportunities

• Presenting more health associated items allows the business to record the market in which consumers are rather conscious about health.
• Developing nations like India and China has biggest markets in the world. Thus broadening the market towards developing nations can boost the Second Cup organisation by increasing sales volume.
• Continue acquisitions and joint ventures increases the marketplace share of the business.
• Increased relationships with schools, hotel chains, restaurants and so on can also increase the number of Second Cup customers. For instance, instructors can advise their trainees to purchase Second Cup items.

Threats

• Economic instability in countries, which are the possible markets for Second Cup, can create a number of issues for Second Cup.
• Shifting of items from regular to healthier, leads to additional costs and can cause decline company's revenue margins.
• As Second Cup has a complicated supply chain, for that reason failure of any of the level of supply chain can lead the company to face certain problems.

Exhibit F: SWOT Analysis