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