SWOT Analysis: Godiva
To conduct a SWOT analysis of Godiva to inform a new business pitch.
A variety of superior products and services that earn and keep customer loyalty. Godiva's products range from varieties of chocolate (milk, dark, white, kosher, pure, and even flavored like orange or pumpkin spice) to sweet treats dipped in or incorporating chocolate to coffee and cocoa. A diverse variety of chocolates and other products that enable the company to target different market segments/customer groups at the same time. Godiva chocolates are available in stores and online at price points ranging from less than $10 to well over $100. A highly successful track record of launching new products in the US and international markets. Godiva listens to customers in international markets and develops new products based on what they learn. This approach, combined with sales and marketing campaigns targeted to individual markets, is what helps their product launches be successful.
One weakness impacting Godiva is a lack of diversity among its employees. Limited diversity among the employees, especially those involved in making important decisions, could ultimately harm the company in international markets. Another weakness is the company's organizational structure as it relates to company culture. Some divisions of Godiva are plagued by mistrust and lack of collaboration. According to the "Godiva Japan: Think Local, Scale Global case study," a culture dominated by "turf wars" between the managers of various divisions results in managers not sharing information and leads to missed opportunities. A third weakness challenging Godiva is how easily replicated their business model is. The company possesses numerous patents and copywrites that protect its intellectual property from the closest competitors. These protections, however, do little to protect the company from startups and other disruptors savvy enough to tweak things just enough to steer clear of true intellectual property right infringement.
Taking advantage of consumer's ever-growing use of E-commerce and social media can allow Godiva to move into areas where it doesn't yet have a physical presence. Advertising on social media can attract new customers and e-commerce can enable those customers who don't live where Godiva has a physical presence to still purchase its products. This can increase sales and revenue without the added expenses usually associated with entering new markets. Advancements in technology also prevent opportunities for Godiva. Machine learning and AI can be used to automate certain processes and transform others, leading to improved efficiencies and lower operating costs. These opportunities can allow the company to dedicate more time and resources in developing new products. Growing global market size and an increase in disposable income in many of those markets present Godiva with additional opportunities. Godiva, building on their already significant global presence and ability to develop products which cater to regional and cultural preferences, can move into these new areas both in stores and through online sales.
International geo-political factors such as Brexit, US/China trade relations, economic problems and political unrest in countries like Venezuela and lower oil prices present threats to just Godiva, but to many other international businesses.
Increased protectionism also present threats to Godiva's continued growth. Governments that become less global and more protectionist run the risk of allowing fewer imported goods into their countries. The result of increased protection could be fewer new markets and fewer opportunities for growth and expansion. Finally, income inequality and a shrinking middle class in some countries present a definite challenge to Godiva. A shrinking middle class means there is less disposable income in those areas which leads to less demand for non-essential products like gourmet chocolate.
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