Cataracts SWOT Analysis
Cultural values (May not interfere Into adapt with the “coffee house”) experience
Has become a luxury brand (daily basis) Cost leadership Startups owned large-scale international business, uniquely corporate culture and very specialization in coffee retailing that making the company became a very profitable organization and has a strong financial base. In 2012, Startups generated revenue of more than $ 13. 29 billion and profit up 14% on the $ 1. 38 billion. As a good result, Cataracts was rated as the Fortune Top 100 Companies to Work For.
Cataracts has a strong brand reputation associated with quality coffee and excellent customer service. Its brand is the most valuable brand in coffeehouse segment and is valued at $4 billion Revulsion, 2013). Created the “Cataracts experience” Cataracts delivers to its customers with excellent quality foods and perfectly blended coffee, premium music, friendly staff and warm atmosphere. Moreover it offers free Wi-If in stores and a comfortable space for its customers.
Let people to feel comfortable and relax, through this way to attract more customers to enjoy these kinds of experience in Cataracts. Because Cataracts focus on delivering positive nonuser experience which isn’t simply provided by their premium coffee, they stresses the point about consumer visits
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Thereby it also stirs up consumer interest in specialty coffee while at the same time preserving brand dominance (Unguent, 2009). Employee management 149,000 partners worldwide, over 90,000 of those in the United States. Cataracts believed, “Partner satisfaction leads to customer satisfaction” (Snider, 2006). So that the company offers its employees extensive range of benefits and a pay rate higher than offered by competitors. Due to the cafe industry is to some extent dependent on front house staff or attendants, their attitude and ability will influence customers’ satisfaction.
In order to increase the service quality of employees, Cataracts offers a perfect employee training system that no less than 40 hours of the training sessions to make them competent to meet customer’ order and minimize their mistakes before they can serve customers without supervision. At the same time Cataracts promotes and encourages team working and collaboration between employees in order to increase employees’ working performance. Since exceptional service can attract and retain customer keep coming back. Arguably, Cataracts has one of the lowest staff turnover rate in the industry.
The strengths provide a favorable impact (Pancreas Intake, 2011).
Over-reliance on U. S. Market There is unbalanced share in the U. S. And international market, due to Cataracts is over-reliance on US domestic market. The organization has a strong presence in the United States of America with More than 75% of the company’s stores in the USA (Snider, 2006). Even though the American coffee market is value over $18 Billion (Pancreas Intake, 2011), but Cataracts is an over reliance on the saturated U. S. Market with a declining market share as a result of intensified rivalry in the marketplace.
High product pricing Cataracts offers great coffee and customer experience but that results in high price of its products. Causing most people thought that Cataracts has become a luxury and they felt it grossly overpriced coffees. Although the company targets the affluent executives, young and old, as its primary market, however the current economic conditions were not really good that will make the customers become sensitive to prices of commodities and products that will cause customers visits may be reduced. Hence, Cataracts’ current high price can be a weakness to affect Startups profit.
It is increasingly becoming like a fast-food chain over time, only the prices of its products are much higher. Higher pricing will limiting the brand to elitists, since this once affordable luxury is no longer available to the average working class (Unguent, 2009). High operating cost Cataracts stores always chooses the busiest and expensive locations to rent in downtown areas, so they need to solve a huge demand of financial and human resources that will bring the negative effect to Cataracts. Besides that, the rapid expansion of the scale of Cataracts did not help Cataracts enhance sale performance and brand.
Instead it threatens Cataracts’ healthy development. The mainly reason is they require use a high operating cost to locations rental and doing the preparation for opening new store (Shah, 2010).
New product offering Cataracts not only offer coffee, but also can offer another new product for customers; it will have more opportunity of the company. Cataracts unveils spring 2012 offerings new drinks, salads and sandwiches. They include a line of bottled Cataracts Iced Caramel Ribbon Crunch Production (Huffing, 2013) that means the business could adding some new products in order to reaching broader customer group.
Besides, Cataracts also can expand the number of coffeehouses that offer wine and beer. On the other hand, Cataracts base on the cultural factor offering new product, efferent cultural has different demand. The company aims to capture a larger market opportunity by going more local and applying its cultural insights such as Cataracts in China, they try to plays to local Chinese tastes and design new products suitable for Chinese tastes (Laurie Burrito 212) it will take more opportunity for the company. Co-branding with other industry However, Cataracts has seeking for opportunities in the social area.
Co-boarding with other industry will bring more opportunities for the company. As part of its ongoing partnership with MASC.. ‘s Morning Joe show. Melissa Allison 2009) Cataracts and Morning Joe will air a special segment from a school in New Orleans on Friday and promote the renamed blend and encourage volunteerism, it is a good opportunity to increase Cataracts reputation in the school. Thus, company has a good reputation that can easy to expansion into market.
Promotions In the market, Cataracts wants to get more benefits, so they will offer tall cup of brew to a patron who buys a drink for another customer. Stout 2013)This is action makes more and more customer go and buy is a big attracts for the customers ,and in very holiday Cataracts has discounts for the people . Let will takes more opportunity for the company .
Relies on international trade for its coffee beans, price of milk Threat of Cataracts at the first it is relies on international trade for its coffee beans . Due to Cataracts has many coffee beans industries in the world, the company depend on international trade, it is indirect factor that will be become threat. Cataracts is raising its price the one of factor because of the coffee bean rise price . T will be lost many customers in the market. In the another words, Startups make a coffee should use milk ,but nowadays milk also has rise price . Base on the news ,food giant Nestle Bad is set to increase the prices of its dairy products from between 4% and 8% by the middle of the year, citing rising global dairy prices as the cause of the increase. (Kali Jamie 2013)Therefore, as a result of the significant increase in the global dairy price, Cataracts have to raise price that keep the company normal operation and revenue . This is another threat factor that Cataracts relies on international trade
More Competitive Nowadays, there are many coffee shops in the market . So there has more and more competitive. Cataracts also exist competitive as a threat. Dunking ‘ Donuts is the world’s largest coffee and baked goods chain, serving over 3 million customers a day . The competition between Dunking’ Donuts and Cataracts is about to get a lot more caffeinated. (Matt Carroll, 2013) . Beside that, the taste of the coffee, the ambiance of the stores, even the business cultures all has being completive. This another factor threat to Cataracts ‘ market.