Strong Market Position and Global Brand Recognition: Currently, the company has about 6,500 stores and has operations in over 29 countries. Cutbacks is also the most recognized brand in the coffeehouse segment and brand. Such strong market position and brand recognition allows the company to gain significant competitive advantage in further expanding into international markets and also help register higher growth in both domestic and international markets.
Products of the Highest Quality: They give the highest importance to the quality of their products and avoid standardization of their quality even for higher production output.
Strategic Analysis Of Cutbacks Corporation
Right Location: Cutbacks has stores in some of the most prime and strategic location across the globe. They target premium, high-traffic, high-visibility locations near a variety of settings, including downtown and suburban retail centers, office buildings, university campuses, and in elect rural and off-highway locations across the world.
This has earned them a significant competence and advantage to be able to penetrate prime markets and tap into customers convince factor.
Expensive Products: While Cutbacks does differentiate their products with being highly quality couple with the whole ‘Cutbacks Experience’, in times of economic sluggishness, consumers to have so switching costs to competitor’s products with lower prices and forgo paying a premium. These premium prices could also pose mom weakness for it to succeed in developing countries.
American/European coffee culture clash with that of other countries: Cutbacks coffee culture may not widely accepted in some countries as part of their international expansion strategy.
Expansion into Emerging Markets: The increase saturation and self-centralization of the US market makes its international strategy even more important. Cutbacks has made good inroad into many countries, with India recently Joining the list with a Joint venture entry.
Cutbacks has a great growth potential in further expanding into the emerging and developing markets. They can leverage their size, experience, financial prowess and efficiencies to make new market share.
Strategic Analysis Of Cutbacks Corporation:
Strategic Alliance may be a vital factor in Cutbacks ultimate success around the world. In Japan, the firm has partnered with a local handbag manufacturer, Scabby Inc. In Spain, Cutbacks has Joined forces with Group VISP, the sec nod-largest family-owned restaurant operator in the country.
Expanding Product mix and offerings: Cutbacks recently started to expand their Shattuck SWOT Analysis By secretions acquisition strategy. This provides significant opportunities for Cutbacks.
Increased Competition: This is by far the biggest threat that Cutbacks faces with the market being at a mature stage, there is increased pressure on Cutbacks from its competitors like Dunking Brands, McDonald’s, Costa Coffee, Pet’s Coffee, mom and pop specialty coffee stores.
Price Volatility in the Global Coffee Market:
There has be significant fluctuations in the market prices of high quality coffee beans, which Cutbacks can’t control. Uncertain marketing environment
– Cutbacks will have to persevere international market due to different cultures, income and spending behavior and local perception.
– Boycotted: Consumers boycotted a Cutbacks store in Lebanon in protest against the U. S.
-Iraq war, and Cutbacks was forced to close its stores in Tell Aviva because of the violent conflict between Israelis and Palestinians.