Strengths, Weaknesses, Opportunities, and Threats (SWOT Analysis)

I. STRENGTH:

 Pricing strategy

- Big Brew Shop's pricing strategy aids in helping them choose the appropriate
rates for their goods and services while taking into account their costs, target
market, and competitive advantage. They solely adhere to the main branch's
pricing, which is unchanging. It is one of their strengths, therefore as a result, the
cost of the beverages they provide remains steady.

 Location

- The strategic placement of the Big Brew Nabua Branch in Nabua is a strength that
stems from its excellent visibility and accessibility. This prime location not only
enhances brand recognition but also ensures that customers can conveniently
access their products, making it a key driver of the company's success in the
competitive milk tea market.

 Practicing honesty and good customer service

- Despite the factors contributing to the changing relationships encountered by Big

Brew Nabua Branch, it still has its strength: Practicing honesty and good
customer service. Those practices can help retain and encourage more customers
to buy their products.

- According to the O.I.C of the BIG BREW (Nabua Branch), they do not engage so
much when it comes to politics, but here are some strengths, the business may
benefit from policies that created favorably to the economic environment, the
government may assist them in promoting their business to gain visibility.

 Cash and online payments

- Online payment system through G-Cash; with that, they would be able to accept
online payments, which would be less hassle for those who do not have cash with
them.

 Ensures legal operation

- The fact that Big Brew has all the necessary licenses and permits assures that the
company runs within the law. This not only improves consumer trust but also
avoids potential legal problems.
 Builds trust with customers

- Regular health inspections and compliance with safety regulations show a

commitment to cleanliness and food safety. This builds trust with customers,
assuring them of the quality and safety of their products.

 Prevents legal issues.

- Big Brew ensures fair treatment of employees, lessens the danger of legal
problems, and creates a positive work environment by adhering to labor laws and
regulations.

 Brand positioning

-
 affordable merchandise
-
 better communication with the consumer
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 Affordable Student Pricing
- Price competitive, as compared to competing brands Big Brew offers affordable
drinks that fit students' budgets.
 Offers Delivery
- BigBrew also offers delivery for those who cannot go outside and visit their
physical store;
 Excellent Quality Of Beverages
- They have an excellent quality of beverages, especially in milk teas and the price
is very affordable for everyone to purchase.
 Excellent Customer Service
- Since the staff in every franchise treat their customers very well. The customer
segment of BigBrew are students, couples, employees, families, and even kids.

II. WEAKNESSES:

 Lack of equipment

- Big Brew Shop's lack of equipment is a problem because it affects the efficiency,
price range, and quality of the goods and services provided. It slows down service
delivery and decreases accuracy. It puts at risk the company's profitability and
long-term sustainability as well as consumer satisfaction and brand loyalty. Big
Brew should make the required investments in the equipment that fits their needs,
budget, and available space in order to overcome this problem. To ensure
 optimum performance and durability, they should also frequently maintain and
repair the equipment.

 Shrinkage and waste

- Big Brew's weakness is shrinkage and waste since they undermine the company's
profitability and sustainability. Inventory loss as a result of spoilage, damage, or
mistake is referred to as shrinkage. Waste is the term for extra or useless goods or
materials that are thrown out or abandoned. They have an impact on client loyalty
and satisfaction. Big Brew's weakness is shrinkage and waste because they
endanger the company's success and expansion. Big Brew should use efficient
inventory management and quality control techniques to address this problem.

 Late deliveries of supplies, longer duration of shipping compared to usual routine, and
damages on delivered goods
 Misunderstanding between staff

- There are many weaknesses that Big Brew Nabua Branch has been encountering
due to the changing relationships it has been experiencing. Here are the
weaknesses that they have been encountering with their suppliers: Late deliveries
of supplies, longer duration of shipping compared to the usual routine, and
damages to delivered goods. According to the officer in charge, they encounter
these kinds of problems sometimes and often. When it comes to the business’
weakness in internally changing relationships, having misunderstandings with
their co-workers is the only factor that contributes to it.

- As I mentioned the Big Brew (Nabua Branch) do not engage so much in politics
so it can be one of the reasons for their weakness, They are not exclusive in
Changing Regulations.

 Lack of machines

- Their adequate number of machines can also be one of their weaknesses due to the
slow production or preparation of drinks during hectic hours. Another thing that may
contribute to this is the lack of credit card machines for bulk orders.

 Strict compliance may require more time and money.

- Adhering strictly to various regulations could require for more time, effort, and
money. The efficiency of the business operations and profitability can be affected by
this.

 Time consuming
 - They only have stalls where students drop by and take their orders, unlike other milk
tea shops which have establishments where customers enjoy their drink, it would be
better if Big Brew allocated funds to build larger spaces to cater to the customers.

 Limited Seating Options

- They only have stalls where students drop by and take their orders, unlike other milk
tea shops which have establishments where customers enjoy their drink, it would be
better if Big brew allocated funds to build larger spaces to cater to the customers.

 Not enough space to accompany their customer

- BigBrew Nabua branches don’t have big dine-in area, this can be good for cost
cutting reasons but it could boost costumer volume if they have more dine-in options

III. OPPORTUNITIES:

 Accessible for customers

- Due to its ideal location, which attracts a lot of foot traffic and offers easy access, as
well as neighboring parking spaces and public transportation alternatives,
accessibility to customers represents a business potential for coffee shops.

 Innovation

- Innovating with flavors and menu items allows us to tap into emerging food trends,
cultural influences, and seasonal inspirations. It keeps our brand dynamic and
adaptable, aligning with the evolving preferences of consumers. Additionally, it can
drive foot traffic to our stores and encourage repeat visits as customers look forward
to trying the latest creations.

 Weaknesses stated

- With the stated weaknesses, they can use those as an opportunity to switch to another
supplier if the change in relationship towards their suppliers continues. With that, they
can ensure more stable and efficient delivery of supplies without any problems. When
it comes to staff honesty and good customer service, it can be used as an opportunity
for their business to grow sales and become known as a shop that offers excellent
customer service
 - Political Support can be a way to help the milk tea business to gain access to
resources such as grants, low-interest, and many more. Political support also helps
your business to engage in building relationships with the community.

 Digital marketing strategies

- The use of platforms to sell their goods and services, such as Facebook, through
sharing and publishing various "pakulo" to engage more clients, is a strategy used by
Big Brew to enhance their exposure and reach online.

 Demonstrate commitment to safety and cleanliness.

- Big Brew has the opportunity to actively show and promote their dedication to
cleanliness and safety, which can set them apart from their competitors and attract
customers who appreciate these aspects.

 Develop consumer trust.

- Big Brew can continue to grow and strengthen customer trust, which is essential for
the long-term success of the business for always demonstrating their dedication to
safety and legality.

 Create a positive work environment.

- Continued compliance with employment regulations can result in a productive workplace

in can improve customer service, employee satisfaction, and productivity.

 target's partnership with BRAD Express Nabua

 expanded loyalty
 become more eco-friendly

 Strategic Focused on Learners Location

- The marketplace where it is situated, since it is a trend nowadays, particularly for

students, is a perceived opportunity for the business to cater to the demands of the
students and be situated in areas that will be accessible to the target customers,
preferably near the university.

 Good Location
- BigBrew attracts a lot of customers since it is located near a drug store, market,
church,bakery and Nabua’s Veteran Parks. Since BigBrew is in a nearby bakery,
drugstore market, church, Nabua’s Veteran Parks, it will be easy for them to attract
potential customers. If people want to hang out with their friends. Individuals who
 want to treat themselves after a hard day's work, ans student who want to enjoy after
class.
-

IV. THREATS:

 Changing Consumer Preferences

- Big Brew faces a threat from changing consumer preferences since it has an impact
on its capacity to draw in and keep customers as well as its profitability and
sustainability. They face a threat since clients frequently demand more and something
they don't have. External influences on consumers, such as the economy, the weather,
or the pandemic, have an impact on their demand and behavior. Big Brew must stay
up with market developments and client feedback in order to counter this danger, and
then modify their operations, goods, and services as necessary. Additionally, they
must successfully explain to their target market their value proposition and brand
identity.

 Health Trends

- There’s a significant external threat that’s become quite apparent. It’s all about the
shifting dietary and health-conscious trends among our customers. We should
consider incorporating options like low-sugar, low-calorie, or even dairy-free
alternatives in our menu. This isn’t just about staying relevant; it’s about appealing to
a segment of the market that’s becoming increasingly health-conscious.

 Stated weaknesses

- The continuous practice of the changes in relationships with suppliers and co-workers
may lead to a serious threat to the business’s sales and efficiency. Its major concern is
the supply-chain problems that may lead to a shortage of production.
In the trend of changing relationships, it is important that we always prioritize the
regular work of the business. Ensuring the supply chain management and
relationships with co-workers and higher-ups, they can deliver good services and
product efficiency that me lead to greater sales in a business.

- Big Brew (Nabua Branch) can experience different types of political threats, even if
the business does not engage so much in politics, there are some threats that may
occur Regulatory Changes, Economic Policies, the process of permits, and licensing
may be delayed.


- Their shortage of machines and appliances can be a threat to their efficient or fast
preparation of products. With the continuous slow service, the customer's review of
the shop can be affected, along with its sales growth.

 Non-compliance can lead to legal consequences and a damaged reputation.

- Non-compliance with regulations can lead to legal consequences, penalties and a bad
image to the reputation of Big Brew. This could have a negative impact on customer
trust and on the business.

 changing customer preferences

 local competition

 Competitive Local Market

- The existence of milk tea shops in Nabua, and the rise of varieties of shops offering
drinks, particularly iced coffee, milk tea, frappe, etc. has brought the Big Brew a
threat of competitors. There is the so-called threat of new entrants, that is referring to
small owners offering the same product.

 Local Competition
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WEAKNESSES:

 Ice Supply and Weather

- In the milk tea business, particularly in warm climates, ice is a crucial ingredient for
making cold beverages like iced milk tea. During hot and sunny weather, demand for
these refreshing drinks typically increases, and customers are more likely to order
them. In contrast, during rainy or colder seasons, people may be less inclined to
purchase cold drinks, which can result in lower sales of milk tea.