ASSIGNMENT: In your responses to your peers, comment on the viability of their plans to mitigate the identified weaknesses.
PEER POST # 1
A SWOT is a very beneficial report for just about any kind of business. All businesses ranging from small mom and pops to large multinational corporations. These reports expose not only the areas that need improvement but also the good things they do that need to be cultivated and nourished. I looked mostly at the SWOT mostly for McDonald’s, Coca-Cola, and Starbucks. One of the weaknesses that I noticed was they were all reporting high profits in the first and second quarters, but started to see declines in the third and fourth quarters due to their competitors increasing the size of their market share overseas. While their U.S. profits were holding strong they were losing ground against their competitors in other areas across the globe. Oddly the weaknesses that I found is also a theme shared between all three companies. Mitigating this is not as simple as it would appear. This would take a lot of planning, marketing, and pricing research. Coca-Cola, Starbucks, and McDonald’s needs to find ways to grab their share of market back from their competitors. That does not mean simply increasing the bottom line. I would look to add a new product or make some menu changes to increase traffic. Create some incentives for food retailers to sell Coke products or run some national promotions to increase visibility and to generate international awareness of the brand. Celebrity endorsements can work, but can also have a negative impact.
PEER POST # 2
A SWOT analysis can be beneficial to a company showing where the company can leverage itself in the marketplace. For example, Starbucks is always on a competitive edge because it is the most recognized brand providing quality coffee in the retail market. Thus, the company has gained the largest market share; its profits have been soaring, putting it in a better position to achieve its business goals. Some weaknesses can affect how the company positions or markets itself. Examples of weaknesses existing across multiple organizations include poor business decisions, e.g., Coca-Cola’s decision to re-franchise its bottling operations, negative brand reputation, e.g., Starbucks lack of brand diversity, pricing issues, uncommitted workforce, poor-quality management, poor distribution networks, uncomplimentary organizational structures, and so forth. A viable plan for mitigating weakness is targeting a diverse audience for a specific brand or purpose. Targeting a particular market does not mean that you are excluding people who do not fit your criteria. Instead, target marketing allows you to focus your marketing dollars and brand message on a specific market that is more likely to buy from you than other markets. This is a much more affordable, efficient, and effective way to reach potential clients and generate business. Another area that shows weakness is related to the actual product they sell itself. In Starbucks’ case, is that the product they sell is not overly unique. So they are particularly vulnerable to imitation by other companies eating into their market share.
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