SWOTing Around

As future managers, we need to analyze frameworks to help us understand the competitive environment where these companies are emerged. This analysis will be based on a very well known marketing framework – SWOT – which will identify both internal and external variables (strengths and weaknesses of the companies and opportunities and threats of the market).

In the case of Brown’s Coffee-Shop, we find the store layout to be one of its major weaknesses because when the customer enters the store it is unclear where he should go to make the order as the counter is too far away from the entrance. This is due to the store being the lobby of their hotel and therefore, the reception is the focus of attention. However, they could take advantage of the clients of the hotel.

Adding to the hotel, there is also a Burger house - Brown’s Burgers – that is right in front of the coffee-shop and that uses the same logo which can create confusion among customers. Regarding the strategies of Brown’s, we consider that they are not aligned because they are aiming to target different segments of customers.

As far as the strengths of this shop, the products are very tasty and with good quality, the environment is relaxed and comfortable and it is less crowded when compared with the other coffee-shops which allows the search for quietness among older customers.   

Concerning Jeronymo, it is a small store usually targeted by tourists, being the only one with no free Wi-fi. They belong to one of the biggest Portuguese groups, Jerónimo Martins, but do not take advantage of the group’s brand equity having low visibility.

When compared to its competitors, Jeronymo appears as a medium price coffee-shop as it presents lower prices. Jeronymo is surrounded by typical Portuguese cafes and, as a result people tend to go there to drink normal coffee or beer instead of the usual coffee-shop macchiato or frappuccino. Therefore, there is a tendency to detach from the original concept.

In contrast to others, Jeronymo is more adapted to the Portuguese culture and habits which may be their biggest opportunity. Introducing themselves as THE Portuguese coffee-shop. Plus, it presents a Complement’s book which we found to be rather original and creative.

Starbucks Coffee-Shop is one of the most recognized brands all over the world and the first name that comes to our mind (top of mind brand) when we think about coffee-shops and in Rossio, they kept its layout and tradition. Due to this standardization, we don’t benefit from a distinct experience because if we go to another country we will have similar products and stores – lacking adaptation to the local culture.

Furthermore, Starbucks is very concerned about the environment and society’s care about having a healthy life style. Therefore, they offer several beverages and foods with no lactose, with soy milk or non-fat ingredients. Regarding the environment, they are very proud about their fair trade coffee which increases the final prices with an added value for the consumer but, we are aware that the money is for a good cause.