SWOT NOTES

SWOT Analysis

Strengths

• Attract investment and sponsorship
• Competitive advantage
• A good and clear corporate path
• High quality product
• Perfect infrastructure

+info

Weaknesses

• Cost
• Quality control
• Consumer losing patience
• Safety risks

+info

Opportunities

• Develop new markets
• Data collection on consumer behavior
• Improve brand image

+info

Threats

• Competitors
• The restriction of alcohol by government
• Unstable consumer demand

+info

Use SWOT chart to analyze the current strengths, weaknesses, opportuities and threats of Diageo.

Weaknesses

Cost: The customer's DIY products may make the production more difficult, resulting in an increase in marginal cost due to the uncontrollability of the production steps. Quality control: Because it is a DIY product of consumers, there may be quality control problems, such as the randomness of product taste and the uncontrollable alcohol concentration, which may reduce the user experience and favorability of consumers. Consumer patience: Because the DIY production process is more complex and time-consuming, it may wear away consumers' patience and reduce their desire to buy. Safety risks: DIY products have not passed the company's safety inspection and product testing, and there will be certain quality and safety risks, which may lead to allergies or more serious consequences, reduce consumer goodwill and affect the company's reputation.

Opportunities

• Develop new markets: Online customized bartending is a new unexplored field with large room for growth, so Diageo has a certain lead. In the post-pandemic era, due to rising demand for low-alcohol flavored beverages, the global craft cocktail market is estimated at $304 million and is expected to reach $837.22 million by 2030.(Ready To Drink Cocktails Market Size & Share Report, 2030 (grandviewresearch.com)) At the same time, consumers are more in pursuit of luxury and refined alcohol products and experiences, so DIY mixers may gain more popularity in the future. (Ref/ At-Home Indulgence - DIY mixology culture allows consumers to indulge on a budget (trendhunter.com))
• Data collection on consumer behavior: Gathering feedback from consumers through forums can help companies better understand consumer needs and preferences.
• Improve brand image: Through diversified bartending Settings, it can cater to young consumers, gain the favor of young people, expand its visibility and influence in the group, and promote the improvement of brand image.

Strengths

Competitive advantage: The company's environmentally friendly recyclable packaging has high utilization rate, large quantity, mature production line, and low cost of making recyclable materials.A good and clear corporate path: Diageo is sustainable, aligned with the United Nations Sustainable Development Goals and supports the work of the World Health Organization. At the same time, the company has a sound corporate culture, in which diversity and fairness can promote the long-term stable development of the company.High quality: Diageo mainly produces high-end wine products, has a long-term stable supply chain and perfect production quality monitoring, can guarantee the quality of the basic wine products involved in bartending.Perfect infrastructure: Diageo is an international global company with 132 production bases, which can be sold to 180 countries and regions, so that the program can be implemented and promoted smoothly

Threats

• Competitors: Competitors may then launch similar products, and the emergence of cheaper and higher quality alternatives may reduce the company's competitiveness and affect the company's market share.
• The restriction of alcohol by government: The management and restriction of alcohol by government departments may be an obstacle. For example, the World Health Organization requires the government to manage and control the promotion and sponsorship of alcoholic beverages, and to intervene in the price. Ref/10 areas governments could work with to reduce the harmful use of alcohol (who.int)
• Unstable consumer demand: Unstable macroeconomic conditions in the post-pandemic era may cause consumers to be affected by inflation. Because online customized bartending itself has a large demand price elasticity, when the cost-of-living increases, consumer demand will decline. Unstable consumer demand may have an impact on Diageo's performance.