The competitor analysis for Starbucks coffee beverages involves the companies such as Dunkin Donuts, Caribou Coffee, Panera Bread, BIGGBY Coffee, McDonalds, 7-Eleven and Einstein Bagels. The competitors such as Dunkin Donuts and McDonald's incorporate extensive menus in their sales, and pose financial resources that strengthen their position, hence threatening the profitability level of the Starbucks coffee beverages.
The competitors such as the Dunkin Donuts and 7-Eleven provide high quality coffee brands that attract clients who are extremely sensitive to prices. On the other hand, the environment of Caribou Coffee is similar to that of Starbucks when it comes to the facilities they use, like free Internet and furniture. However, Caribou Coffee lacks market expansion, which hinders it from accessing the achievement level of Starbucks. The BIGGY Coffee competitors fall in the middle category when contrasted to Caribou Coffee and Dunkin Donuts competitors .
The following rank indicates coffee sales and the perception of customers depending on the brand. This is according to the coffee sellers who provide a comfortable and relaxed environment to competitors with no frill environment and sales of cheap coffee. The list of these coffee competitors begins with Starbucks, Caribou, Panera Bread, Einsteins, McDonalds, Dunkin Donuts and 7-Eleven. Starbucks uses a marketing strategy to survive among its competitors where it positions its selling outlets, and creates a place where clients can spend time away from work and home. Starbucks incorporates this strategy by designing its coffee selling stores relaxing and comfortable. This has made the company become a coffee giant among its competitors by incorporating the marketing strategy that involves fancy furniture and music to soothe the customers. In addition, Starbucks beats its competitors through offering wireless Internet, complimentary books and handicapped access to motivate its clients. The availability of the favorable environment Starbucks provides to its customers in contrast to its competitors leads to positioning of its products at a higher level because of their high quality.
For instance, one of the competitors that have direct competition with Starbucks is McDonald's. This is evident when they join the upscale coffee market by introducing McCafe Coffees in the market. McDonalds extends their competitions via advertisements in places such as restaurants, which increases its popularity at the market. This direct competition is evident when McDonalds provides coffee at a cheaper price contrasted to its competitor Starbucks.
In addition, McDonald's offers amenities that entice patrons from Starbucks. Another step that makes McDonald's and direct competition with Starbucks is the availability of easy access to the Internet everywhere. The strength of McDonald's is evident through its rank of brand in the market, which places it on the 9th top position out of 100 globally. This enables the company to earn an estimated value of $21,500 through its coffee sales. In addition, the strength of McDonald's is clear when it provides cheap and easy integration of its coffee, especially taking into consideration it has already initiated its sales in diverse brand stores.
McDonald's also offers coffee at cheap prices 60 to 80 cents less in contrast to their competitors Starbucks. In addition, McDonald's has extra amenities, like drive-thrus and play areas; this places it on a high competition level with Starbucks in the market. However, the weakness of McDonald's as a competitor is evident when customers perceive their coffee brand as low quality in contrast to Starbucks coffee. The atmosphere and customer services are not as excellent as that of Starbucks, which hinders the company from becoming the best coffee seller in the market.
The next direct competitor is Second Cup; it is among the largest retailers of coffee in Canada with approximately 360 cafes across the country. The strength of the Second Cup is evident through its expansion to other parts of the world such as Saudi Arabia, US, Egypt and Morocco since its inception. The Second Cup is also strong in the market because, unlike Starbucks, it is not consistent with its drinks. However, its weakness is evident when Second Cup fails to provide an attractive atmosphere to clients, while Starbucks does it. The growth of Second Cup has led to the increase of its coffee sales by 6.1 per cent since 2007, making the company rather competitive in the market.
The indirect competitors of Starbucks include restaurants and retailers from the prime retail stores. However, the Starbucks Company believes that its customers choose the alternatives because of certain convenience, services, cheap prices, and quality of the coffee they sell. Coffee beverages and whole beans the company offers face indirect competition from retailers, supermarkets, and other developing coffee stores. In addition, the Starbucks Coffee Company faces significant indirect competition from mail orders and wholesale suppliers. This is because the indirect competitors tend to have high marketing and financial resources in contrast with the Starbucks Company. Starbuck believes that, in the list of its indirect competitors, the supermarkets distribute most of the coffee products because of the variety of choices they offer to customers, thus creating competition in the market.
Linda works as an editor at https://essaysservice.com/how-to-write-a-literary-analysis-essay.html. She has always enjoyed working with a variety of literature and being interested in new facts. In addition, she easily finds common ground with many people. She also received her master's degree from American University Washington
July 9, 2021- -
-
Report