Difference Between Dunkin Donuts And Starbucks

Introduction

A cup of Joe, Java or brew, it goes by many names. It can be your morning jump-start or afternoon pick me up to be enjoyed alone or with the company of others. It 's a drinkable source of energy that is enjoyed in the United States and in many other places around the globe. It 's no wonder coffee is such a popular commodity. Companies such as Starbucks and Peets’ have revolutionized the coffee shop industry in the US, by making it easy and convenient for consumers to purchase single-serving cups of coffee. Not only is the service quick and convenient but it also allows consumers the ability to personalize their drinks to their desired preference, making it a more enjoyable experience than having a cup of instant coffee at home. In this paper I will be exploring the coffee shop industry, which will be defined as firms who sell single-serving cups of coffee to their consumers. Brief History

During present day, one immediately thinks of coffee consumption done in the form of liquid, but this is not how people originally consumed it. Beginning around 575 C.E. coffee

Starbucks holds 35% of the industry market share making it the top firm in this industry with Dunkin’ Donuts falling in second, with a market share of 19.8%. Together they hold 54.8% of market shares, and the remaining companies with shares totaling 45.2% holding less than 2% each (Ibis World: Major Companies). Since these two firms hold most of the shares with other firms holding smaller shares, the concentration level for the coffee shop industry is considered “medium” according to the Ibis World Report for this industry. This is based on the concentration ratio for the top four firms and since it is above 50%, it is ranked as mentioned above. While this industry is very competitive, barriers to entry are rather low as there are no restraints or limits on who can enter the