Strengths
• Government control of coffee market has consumer confidence high
• Denmark has no restrictions on capital transfers. Denmark adheres to EU rules on the liberation of capital movements. Also Denmark has no foreign exchange restrictions.
• Political violence is unknown in Denmark
• Corruption is generally unknown in Denmark.
• After oil, coffee is the most traded and valued commodity in the world.
• The Scandinavian countries (Finland, Denmark, Norway, Sweden) consume between 8 and 11 kilos per capita, per annum. This is the highest level of coffee consumption in the world.
• This expansion could strengthen a coffee shop’s global presence and also minimize risk.
• Danish currency, the Danish Krone (DKK), is pegged to the Euro.
Weaknesses
• Denmark citizens may not acquire a taste for an American coffee, which in turn could lead to diminishing returns.
• There are a very few coffee shops based in Denmark, so creating a pioneering image could backfire.
• In the coffee industry, beverage innovation is a determining factor of the Company’s success. The lack of beverage innovation could have a significant adverse affect on performance.
• Denmark has yet to adopt the Euro, the common currency of the European Union, as its currency.
Opportunities
• Volume of coffee sales increased in 2003 and showed strength in 2004.
• Hot drinks are subject to international influences. These influences are slowly changing drinking patterns in the hot drink market.
• In 2003 coffee consumption outside the home increased to 27% compared to its 2002 mark of 25%.
• The tea market was in a downward trend in volume sales in 2003.
• The Denmark hot drinks market is dominated by international players. Sara Lee Corp., Kraft Foods and Nestle all gained a dominant position in Denmark’s hot drink market by means of acquisition of already existing well known local companies. They utilized strong country loyalty by not changing the name but at the same time developing new flavors and brands.
• Denmark has no restrictions on capital transfers. Denmark adheres to EU rules on the liberation of capital movements. Also Denmark has no foreign exchange restriction.
• Vesterbro, Copenhagen’s former red light district, lends itself to trendy businesses such as coffee shops.
Threats
• Existing competition includes the following: o Ricco’s Coffee Shop o Art Café Riga o Café Zach o Bang & Jensen o Hackenbush o Café Sonja o Amokka Kaffehaus o Other cafés
 Bars
 Restaurants
 Fusion Cafés (cafés with areas to shop, do laundry, or another activity)
• Kaffeplantagen Coffee Bar & Flower Shop
• Barbarellah Bar, Clothing Store, & Interior Decoration
• Potential government crackdown on hemp marketplace in Christiana (square within Copenhagen) could harm other businesses such as coffee shops
• Low population growth in Denmark leaves coffee consumption at its saturation point.
The larger serving size of Great Cups of Coffee is perhaps the most apparent gage that will improve appeal for the company’s customers. Receiving extra of a proportionately quality product for a comparable price obviously works as an enticement for customers to prefer Great Cups more than the opposition. While customers identify with a better quality and superior taste with fresher coffee, Great Cups supports its effective model of serving coffee that has been roasted no more 72 hours ago and that is blended and ground right at the store. Great Cups also provides as an unintended marketing method community bulletin boards and assists with book club gatherings as well as
The situation in Denmark is important because there is a new king and a shift in power, so the new King has to make the citizens support
Emphasis on quality, Starbucks Experience, brand image, and important suppliers to dispute lower price contributions to competitors hence increasing profits
Nespresso sells very well in Europe and is experiencing continued growth in the U.S. As we as a country and a world slowly come out of the recession, there will be increased sales in the luxury products and people will be more willing to spend money on luxury products to indulge and pamper themselves. Nespresso has found their place in the coffee market between high-end premium coffee makers and the less expenses lower quality systems. As the New York Times said in 1949, “over second and third cups flow matters of high finance, high state, common gossip and low comedy. [Coffee] is a social binder, a warmer of tongues, a soberer of minds, a stimulant of wit, a foiler of sleep if you want it so. From roadside mugs to the classic demi-tasse, it is the perfect democrat.” (New York Times)
Coffee is a worldwide cash crop of which demand has exponentially increased over the years. “Coffee is (after oil) the world’s second most important traded commodity” (Cleaver 61). Competing coffee brewing companies wage war on offering the freshest, best tasting coffee the market has to offer. With such stiff competition there must be enough coffee beans deemed to be good enough in quality to supply the increasing demand. Starbucks can be considered one of today’s top competitors if not thee top coffee manufacturer presently in business. This successful company has had a huge impact on the coffee industry as well as the world. They have gone through great length to provide consumers with an excellent product as well as create a legacy that shows how to best go about running a massive corporation while keeping the environment clean and healthy.
Starbucks. Seattle’s Best. Dutch Brothers. These three are only a few of the many major coffee marketers in the United States. We have turned into a nation obsessed with coffee. As each day dawns, the rising sun meets the rising aroma of brewing coffee. And it does not stop there either: though Americans do drink 65% of their coffee during the morning breakfast time, 30% is consumed away from the mealtable (Huffington Post). But how many of the 100 million Americans who help to drink the 146 million cups of coffee consumed by the United States each year (Huffington Post) actually understand where their coffee comes from? Awareness has risen in recent decades, leading to concern for the living conditions of coffee farmers and those living in third-world countries in general. In turn this has led to the creation of the Fair Trade vision, supposedly an system to ensure that coffee farmers earn a living wage and that they have access to the opportunity for a better life. This eases the conscience of the average American, who thinks, “Good. Now I don’t have to feel bad about those coffee farmers anymore. I can have my morning coffee and know that I’m doing my part to help those who have less than we do.” But does Fair Trade accomplish its goal? Does it really provide maximum benefit to the farmer? Fair Trade coffee is not as simple a concept as it may seem: some aspects benefit farmers while others hinder them. Rules for Fair Trade Coffee as they stand today require some revision in order for Fair Trade agreements to truly live up to their full potential to help famers.
...ore. The weakness for Starbucks is only Colombian coffee will distort the brand name. The opportunities are that Colombia has a growing middle class. The threats are being an American company the store can be targeted for terrorism, or Colombians will prefer a Colombian company to an American one. The weakness and threats outweigh the strengths and opportunities.
The beverage industry is highly competitive and presents many alternative products to satisfy a need from within. The principal areas of competition are in pricing, packaging, product innovation, the development of new products and flavours as well as promotional and marketing strategies. Companies can be grouped into two categories: global operations such as PepsiCo, Coca-Cola Company, Monster Beverage Corp. and Red Bull and regional operations such as Ro...
Besides the high demand and cost for gasoline these days, coffee is considered the second most traded commodity on worldwide markets next to oil. "Coffee is grown in more than 50 countries in a band around the equator and provides a living for more than 20 million farmers. Altogether, up to 100 million people worldwide are involved in the growing, processing, trading and retailing of the product" (Spilling the Beans , ). In 2001, coffee farmers and plantations produced over 15 billion pounds of coffee while the world market only bought 13 billion pounds. The overproduction in the coffee industry is not a usual thing and is one of the major reasons why prices vary throughout the industry.
Ferdman, A. Roberto. (2015, Feb. 21). It’s official: Americans should drink more coffee. The Washington Post.
These are but a few of the many strengths, weakness, opportunities and threats that the Starbucks company may face. This is why a marketing team along with data and analytics is essential to comprising a new product. It requires research, innovation, hard work, and a little luck, the Starbucks Brand is more than just coffee. It’s a simple yet detailed product tailored to meet the consumers need at home, at work, and in between. (Starbucks Corporation,
The culture of Denmark is both traditional and modern. Denmark is known for being the happiest country in the world and the Danes were considered to be the strongest and tallest of the Nordic tribes. It is not certain where the Danes originated from, but some believed they came from the southern part of the Scandinavian peninsula ("Denmark." Encyclopedia Americana). Most people in Denmark are Evangelical Lutherans (“Denmark” CIA World Factbook). The Evangelical Lutheran Church “is an institution with deep roots in Danish history, and people rally to it in times of grave crisis, such as World War II, but it is hardly a vital social force. It engages extensively in social work, however, and parish clergy still collect vital statistics for the state. Attendance at church services is extremely low” ("Denmark." Encyclopedia Americana). The Danish language is similar to Norwegian and Swedish and the Latin alphabet is most commonly used ("Denmark." Encyclopedia Americana). Education is very important to the people of Denmark and they are very lucky that the government provides them free education (Murphy). Beginning at the age of seven, children begin Folkeskolen, a primary school, where they learn math, history, geography, science, art, music, physical education, and religion ("Denmark." Encyclopedia Americana). They also study and learn Danish, German, and English languages (Murphy). After attending Folkeskolen for nine years, some students move on to high school and some choose a trade school ("Denmark." Encyclopedia Americana). Many adults also attend high school in Denmark to learn more about sports, history, culture, or literature (Murphy). The people of Denmark eat many of the same foods ...
Preliminary Starbucks – one of the fastest growing companies in the US and in the world - has built its position on the market by connecting with its customers, and creating a “third place” beside home and work, where people can relax and enjoy themselves. It was the motto of Starbucks’ owner Howard Schultz and, mostly thanks to his philosophy, the company has become the biggest coffee drink retailer in the world. However, within the new customer satisfaction report, there are shown some concerns, that the company has lost the connection with customers and it must be taken some steps to help Starbucks to go back on the right path regarding customer satisfaction. I will briefly summarize and examine issues facing Starbucks. Starting from there, I will pick the most important issue and study it from different positions.
The nation of Sweden entered the European Union 1995. As a member of the European Union, they takes part in the decision making process when there’s new common rules are drafted and agreed. The Swedish Government also represents Sweden in the European Council of Ministers, where it plays as a decision making system. Some issues previously decided by the Riksdag i.e. the parliament of Sweden are nowadays decided at the EU level.
When I saw this discussion, I couldn’t help but think of Starbucks and the impact they’ve made throughout their 45 years of establishment. I worked with them for about 7 years and saw how unique they were from your everyday coffee and latte spots. A retail company with thousands of coffee shops in the US as well as in other countries, this particular retailer has been able to catch the eyes of all ages as well as locations throughout the world. For example, today college students utilize Starbucks locations to study rather than go to a nearby library. Starbucks is also known for its best coffee and espresso drinks (Latte or Frappuccino) and with one of its delicious espresso 's any student or just a person stopping in to enjoy its lounge area where there is free Wi-Fi is awesome! Starbucks lifecycle has made a 360 turn around and been revamped twice to accommodated the growing market. Customizing their brand to fit more in with everything and not just one thing. By doing this they’ve created multiple product lifecycles within their own lifecycle as a corporate company.