Preview

Starbucks vs Dunkin Donuts

Powerful Essays
Open Document
Open Document
4779 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Starbucks vs Dunkin Donuts
Table of Contents:
1. Introduction 3
2. Industry Overview 3
3. Competitive Landscape 3
4. Industry Lifecycle 4
5. Industry Trends 5
6. Macro Environment Impact 6
7. Porter’s Five Forces 7
8. Starbucks Company Overview 9
9. Starbucks SWOT 11
10. Starbucks Balanced Scorecard 15
11. Dunkin Donuts Company Overview 15
12. Dunkin Donuts SWOT 16
13. Dunkin Donuts Balanced Scorecard 19
14. Conclusions 21
15. Reference 22

1. INTRODUCTION
This study gives a brief review of the U.S. and international coffee shop industry. The coffee industry includes 20,000 stores with combined revenue of $11 billion. Approximately 20 million people work in the coffee industry worldwide. The coffee industry is very concentrated at the top and fragmented at the bottom with the top 50 companies taking up to 70% of the sales. Starbucks lead the way with over 16,680 stores worldwide; and there are some other competitors following them very close.
2. INDUSTRY OVERVIEW
The coffee industry and the coffee shop business has boomed in recent years, especially with regards to specialty coffees. Companies in this industry sell coffee drinks and other food and beverages for consumption on the premises or for takeout. Major companies include Starbucks, Dunkin Donuts, and Krispy Kreme and so on. The US coffee shop industry includes about 22,000 stores with combined annual revenue of about $12 billion.(Starbucks Website) Coffee shops are part of the specialty eatery industry, which also includes outlets specializing in products such as bagels, donuts, frozen yogurt, and ice cream.
3. COMPETITIVE LANDSCAPE
Demand is driven by demographics, consumer tastes, and personal income. The profitability of individual companies depends on efficient operations and high volume sales. Large companies have advantages in purchasing, finance, and marketing. Small companies can compete

You May Also Find These Documents Helpful

  • Best Essays

    Starbucks the known name in the world of coffee business had started off with little company which now has transformed in a successful corporation. This brand has gained remarkable success over period of time and has proved itself as a reputable coffee provider in term of taste and quality. The major contribution in this success was their aggressive expansions strategies. These strategies have enabled them to develop a dense chain of stores not only in America but all over the world. Their strategic approach towards the business has enabled them to gain value of $12 billion in 2008 from $2.9 billion in 1998 (Higbee, Liaw, Ting, Tjho, ton, 2008).…

    • 4211 Words
    • 17 Pages
    Best Essays
  • Good Essays

    BA 440 Starbucks SWOT

    • 870 Words
    • 3 Pages

    Starbucks employs over 149,000 workers and brought in a profit of $1.38 billion in 2012 (www.strategicmanagementinsight.com). The company is a household name that has been featured in television and movies and a brand that is sought after by countless celebrities. Although the company is the top retailer of coffee in the United States, Starbucks has shown a trend in sales since early 2009 that allude to the fall of the “great coffeehouse empire”. Because of this troubling news, executives at Starbucks have began to look deeper into the strengths and weakness of the organization and have tried to build courses of action that will help propel the chain back to the top of their market.…

    • 870 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Rsm/260 Final Exam Paper

    • 1195 Words
    • 5 Pages

    Starbucks’ sales and profit growth have been phenomenal and the company has changed the way that Americans think about coffee. Starbucks’ stores range from coffee carts in crowded city streets to intimate coffee bars to full-sized restaurants that sell espressos and cappuccinos as well as coffee by the pound, coffee-making equipment, and food items. Starbucks was recently ranked in the top 75 global brands in a study conducted by the consulting firm,…

    • 1195 Words
    • 5 Pages
    Powerful Essays
  • Better Essays

    ECON 101 - Essay 1

    • 881 Words
    • 3 Pages

    The demand for coffee and specialty coffee products have been steadily increasing. One of the leading factors affecting the demand for coffee beans is an increase in specialty coffee shops, such as Starbucks. Starbucks has become one of the most favorite coffee spots with over 21,160 stores in 63 countries and territories, including the United States, China, Canada, Japan and the United Kingdom (Starbucks Corporation 2013 Fiscal Report). Their locations serve hot and cold infusions, ranging from a regular Americano to Frappuccino’s and a whole array of whole-bean coffee, micro ground instant coffee, full-leaf teas among other goodies. It is no surprise that Starbucks has become a significant success, controlling a high percentage of the coffee supply.…

    • 881 Words
    • 3 Pages
    Better Essays
  • Better Essays

    Starbucks vs Tim Hortons

    • 1379 Words
    • 6 Pages

    Starbucks is a “premier roaster, marketer and retailer of specialty coffee” (Marketline 2012). This company is globally recognized because of their vast amount of stores, consisting of more than 17,000 retail stores in over 55 countries. Most retail stores are in highly populated areas, like “downtown and suburban centers, office buildings, university campuses and in select rural and off-highway locations” (Marketline 2012).…

    • 1379 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    Even though, Starbucks and Dunkin’ Donuts has a very similarities in their menus and the way how they advertise their product by using the same media market to get them out to the public. As a customer, I will prefer Dunkin’ Donuts because those stores are in walking distance from my place of work and they have two DD in my town. There is no Starbucks in near my town. For example, during the summer I go to DD just to get a drink after a hot day and I will stay to use their free Wi-Fi that is available for everyone to use. Plus, they are known for having a high quality…

    • 114 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    Koji Tanaka Susan Carder MKT333 Section 1 10/11/2013 Starbucks vs. Dunkin’ Donuts 1. Describe the targeted segment(s) of each Starbucks and Dunkin’ Donuts.…

    • 348 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    The coffee shop industry possesses a very high intensified competition on all players: both Specialty Brand and One-Store Coffee Shops. The main reasons that contribute to the high competition are…

    • 1487 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Starbucks Inventory Paper

    • 471 Words
    • 2 Pages

    Starbucks Coffee Company is a gourmet coffee provider with over 17,000 stores in 55 countries worldwide in fiscal year 2011 (Starbucks Company, 2011, p. 3). Its main focus is to provide gourmet coffees, teas and related beverages in its stores worldwide. To ensure that Starbucks continues to provide superior products and services, it must ensure that it has in its stores enough inventory to service its valued customers, without sacrificing quality and with decreasing the possibility of waste.…

    • 471 Words
    • 2 Pages
    Good Essays
  • Best Essays

    Business Economics

    • 2828 Words
    • 12 Pages

    However, a spokesperson for Starbucks said that heavy investment was paying off in terms of a record number of customers and a return to solid sales growth. The group has put aside £24m this year to continue refurbishing its UK stores. It is also focused on rolling out free Wi-Fi, sourcing Fairtrade coffee for its espresso-based drinks, and experimenting with an instant coffee brand to fight off competition from JD Wetherspoon and McDonald 's. Starbucks competes in the Service Sector, Specialty Eateries Industry and is the dominant player in the Gourmet Coffee segment. This essay is going to explain its major external and internal environmental factors impacting upon its operations in its appropriate market structure.…

    • 2828 Words
    • 12 Pages
    Best Essays
  • Good Essays

    Starbucks Global Strategy

    • 5602 Words
    • 23 Pages

    I would like to proceed with my analyses of the global market place, with examination the young but already well recognized brand world wide – Starbucks. In my research I will explore on changes in the product, operations, and strategies at Starbucks influenced by the changes in the global marketplace. Due to word limitation on the essay, please refer to Appendixes for more detailed information.…

    • 5602 Words
    • 23 Pages
    Good Essays
  • Powerful Essays

    Comparaison of Two Ceos

    • 1976 Words
    • 8 Pages

    Starbucks Coffee Co. has been created in 1996 in Seattle, and then many years later opened a store in Tokyo and now, count more than 16,000 stores in 50 countries. It is one of the leading companies of coffee area in the world[1] while PepsiCo, a company that employs 198,000 employees with annual revenue of 43 billion dollars is one of the biggest worldwide company in the food, beverage and snack sector. Its portfolio of products is available in more than 200 countries with brands like Tropicana (juices), quarter food, and more…[2] According to the Fortune 500 magazine, contributed to increase the global revenue of this company of 12% from 2006 to 2007.…

    • 1976 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    lalall

    • 823 Words
    • 4 Pages

    Starbucks Coffee Company is the United States the name of a chain , founded in 1971 , is the world's largest coffee chain , whose headquarters is located in Seattle, Washington, USA . Starbucks in the U.S. and Canadian students is very popular with the urban white-collar workers . In addition to coffee , Starbucks also tea, cake and cake stuffed leather goods . Starbucks stores, and even with some supermarkets, bookstores and other cross-industry alliance , to seek to co- shop opened. In general, the price of Starbucks coffee and other similar class competitors fairly . In 1987, Howard Schultz took over Starbucks coffee throughout the United States and expansion . Decade, the company's revenue has grown rapidly from about 10 to 1300 million U.S. dollars . In 2007, the coffee company earnings of approximately $ 940 million in worldwide stores. The report will be published Starbucks mission , products, partners, customers , stores , neighbors and the environment. Coffee companies can use Porter's five forces analysis of industrial structure . The core competitiveness of the company, such as products, social, environmental and economic responsibility and human resources organization and use Porter's generic strategies to gain competitive advantage from three points can be explained. In addition, this report will provide the recommended strategies and predict the possible negative recommendations will lead to the potential consequences .…

    • 823 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Essay

    • 1048 Words
    • 5 Pages

    International Marketing Written Report 1 Starbucks – A Coffee Kingdom How it comes to enter into the Hong Kong market? Content Introduction ......................................................................................................................................... 1 An int…

    • 1048 Words
    • 5 Pages
    Satisfactory Essays
  • Powerful Essays

    Marketing

    • 3174 Words
    • 13 Pages

    A comparatively narrow perception of the market Starbucks is working in would be the coffee shop market. The UK coffee shop market segment increased by almost 7.5 percent in 2012 to hold almost fifteen thousand coffee shops with a business of 5.8 billion pounds (Mcgrath, 2012).The largest portion of the market includes branded coffee outlets which is a segment that represents an oligopolistic market structure. The stores’ location is distributed amongst branded coffee shops (5,300), non specialist outlets (4,800), and independents (4,100). Even though Starbucks do not claim itself to be a real coffee shop instead, a place where they can inspire the human spirit and nature (Starbucks Coffee Company, 2013). Therefore, the company closely focuses to any offers that deliver their customers with some benefit.…

    • 3174 Words
    • 13 Pages
    Powerful Essays

Related Topics