The report revolves around the Retail Industry. As it is a very generic industry we have taken the Coffee Retail Market as the highlight of scrutiny. Our scope of study is focused taking in consideration only India as the geographic segment.We broadly look at the Porter’s Five Forces of the industry specifically. Also the complementors are observed and how they affect the retail business of coffee houses. The major players identified in the industry are Starbucks, Cafe Coffee Day, Barista, Costa Coffee, and Nescafe. Grilling down further the report includes SWOT analysis, External Factor analysis matrix ,Internal Factor analysis matrix and PESTEL analysis.
2. Porter’s Five Forces
The porter’s five forces model framework is very helpful in understanding the industry and market closely. It further helps in determining the profitability of the industry as a whole. Also helps the management in taking strategic decisions accordingly. 2.1 Threat of New Entrants
In the present world coffee has become a really popular beverage among Indians. This makes it an attractive market for the potential companies who are looking up for opening their retail coffee houses in India. Entering the industry is not that cumbersome in case a business house admires to open up a small coffee shop. Problem arises in respect to entering the industry when they aspire to set up retail coffee chains or speciality coffee shops.
Due to many established names in the industry like Cafe Coffee Day and Costa Coffee, establishing brand name also becomes an issue.
Companies already with established brand names like Coca Cola, Starbucks can enter the industry easily without much caution as they already have marketing strategies designed in their favour.
As a conclusion, we can state that barriers to entry are Low especially for global brands and they can easily enter the coffee retail industry with established marketing strategy, name, and huge capital
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