Donkey Coffee and Espresso is a well-known coffee shop brand in Athens, Ohio, which sells fair-trade coffee and food products from local farm on West Washington Street. It has been around for more than 10 years. Donkey’s product mix includes high-quality espresso beverages, chocolate beverages, blended coffee and cream, brewed tea, food items and others. The SWOT analysis will focus on Donkey’s products to understand how their products contribute to success. Internally analyzing Donkey’s strengths and weaknesses helps the company determine their market position, and locating opportunities and threats externally assist to stay ahead of their competitors.
Donkey has been in Athens for over 10 years offering high-quality coffee and satisfying
…show more content…
The competition from those coffee shops is a serious threat for Donkey, and a large proportion of market share is taken away. Starbucks is a strong competitor, and it illustrates the threat for Donkey. First of all, both Starbucks and Donkey have a good reputation for high-quality coffee. However, when people consider about the awareness, Starbucks’ coffee will get more recognition. According to the report “Strategic Analysis Of Starbucks Corporation,” Geereddy (2013) reported that Starbucks has global brand recognition for selling highest quality coffee. Starbucks is well-known for high-quality coffee, and this advantage is hard to be replaced by other coffee shops. Second, the cost of products in Starbucks and Donkey is quite different even though both of them offer fair-trade coffee. Donkey purchases fair-trade beans primarily from the Dean’s Bean, and switching between several suppliers will drive price of coffee beans up. Geereddy (2013) analyses Starbucks’ supply chain as “…coffee beans…grown in select regions which are standard inputs, which makes the cost of switching between substitute suppliers, moderately low.” Starbucks as a global coffeehouse can control cost of coffee beans to be more stable and lower than Donkey, because they have their own supply chain and regular suppliers. Starbucks has more advantages in cost-saving, so Donkey is facing stiff
Coffee, one of the world’s most known beverages. Seen being drinking at work places, colleges, or in the convenience of your own home. There are a variety of companies that provide us the people with coffee. It can be your local market, bakeries, or even fast food places. 3 places that stand out and our known very well for supplying Americans with coffee is Starbucks, Dunkin Donuts, and McDonald’s. From their strategic advertising, deals, and even straight down to the design of their cups, they meet the definition of marketing. We will be examining these 3 companies using the marketing mix which consist of product, price, place, promotion and also cover value based marketing and see how these companies meet these definitions and how they satisfy their customers as well.
The two companies involved in this case study are Green Mountain Coffee Roasters and Keurig Coffee Inc. They are both in the coffee industry. What is interesting is that Keurig Coffee Inc. actually started off as “a technology company in the coffee industry where they developed a brewer that represents a fusion of technology and design” (C36 in the book, [Dess et al, 2012]). Green Mountain Coffee Roasters’ website is http://www.greenmountaincoffee.com and Keurig Coffee Inc.’s website is http://www.keurig.com
An article in the Seattle Post, describes the alliance that Starbucks is making to ensure that a sustainable supply of high quality of coffee is produce in Latin America. "Starbucks President and CEO Orin Smith said the alliance is partly his company's effort to pass on the "high price" of a cup of coffee to farmers." (Lee, 2004). He states that the high price enables them to pay the highest price to the farmers. Though the high prices to suppliers can demonstrate that money get to farmers with being diverted. Starbucks overall goal with this alliance is to buy 60 percent of its coffee under the standards agreed upon by 2007. "The agreement reflects the growing power of the premium coffee market and efforts to exploit it for the benefit of small farmers" (Lee, 2004).
A Keurig Coffee Maker is a familiar name for every coffee lover. It's like a genie in your kitchen. All you do is press a button, and freshly brewed, delicious hot coffee is served in a jiffy. Life couldn't get any simpler. Keurig Coffee Makers are manufactured by Keurig, a company founded with the mission to bring gourmet coffee to regular households and offices. And it has done just that. Today, Keurig holds a huge share in the market space with its coffee makers installed in a large number of commercial workplaces and households and the best brands in the coffee world making their own gourmet blends of K Cups which is an innovative Keurig concept.
On average two new brews are released in the taproom every month as the varietals rotate through the menu alongside the permanent offerings that are the flagship beers (Graffiti House West Coast Style IPA, Gold Cup Russian Imperial Stout, Chukker Czech Style Pilsner and six others). What the separation of production and tasting areas also accomplishes is to allow the area not to take on solely the aura of a drinking establishment. According to Julie “we wanted [the taproom] to be a place to hang out, where the community can come and have fun.” From our group’s experience, she accomplishes that, and the community embraces it as a multi-generational meeting place that may or may not involve alcohol consumption. It is open six days of each
The importance of economic indicators to the strategic planning process in any organization is the ability to benchmark economic conditions that contribute to improve profitability, business growth and market size. Leadership sets up the mission “to establish Starbucks as the most recognized and respected brand in the world.” In doing so, they have created a set of industry-leading, comprehensive coffee-buying guidelines addressing coffee quality, financial transparency, social and environmental responsibility. Starbucks strategy is also expanding market in globally to provide high quality coffee in convenient and visibility locations. They are continuing to innovate and extend the business with imaginative new ready-to-drink beverages and expanded packaged coffee offerings (Starbucks Corporation, 2007).
Since there has been such a drastic increase in coffee the last decade, there is needed to be more production for it around the world; “Not all coffee beans are created equal through the eyes of sustainability. Organic shade grown coffee on smaller farms is ideal. The reality is that working conditions, pesticide use and many other factors vary greatly in this industry” (Lozanova 122) Since there is such a big market for coffee, there was a lot produced which lead to price going down. This caused a downfall for people who did this for a living and couldn’t compete anymore. This problem has been solved when Starbucks eventually collaborated with Coffee and Farmer Equity Practices (C.A.F.E. Practices) This practice set guidelines for purchasing coffee. These farmers were also working with unhealthy coffee trees so Starbucks made a public announcement on the situation. In the article, Starbucks Is Fighting For The Future Of Coffee By Providing 100 Million Healthy Coffee Trees By
Koehn, N.F., Besharov, M.A., & Miller, K. (2008). Starbucks Coffee Company in the 21st Century. [Case study]. Boston, MA: Harvard Business School Publishing.
Companies all over the world varies but yet shares a common challenge, that is to solve problem not only effectively and efficiently but also creatively. The P-O-L-C framework which stands for Planning, Organising, Leading and Controlling plays a major role in both the company’s survivability and success. The SWOT analysis looks at both internal and external factors that can affect the Starbucks’s performance. The purpose of this report is to define and analyse how Starbucks respond and should have respond to the change of its external environment on the cofee market,This report will also identify and disscuss how The P-O-L-C framework and can help starbucks to compete and reduce the loss of their failing peformance in the Australian market and how SWOT analysis helps to define some externalities that can be a threat to Starbucks.
Caf? Expresso, as the first mover in the coffeehouse marketplace, which has expanded quickly and become one of the ?big three? players in the global coffee shops chain. However, recently this company is continuously facing a lot of problems in terms of its staff, easy-copied business model and product range, resulting this company lost its leading position to the number three. Therefore, its adjusted visionary goal is ?return Caf? Expresso to the number one position in the marketplace? (Beardwell, 2010). To achieve this goal, Caf? Expresso identifies ?the coffee drinking experience? is significant to achieve competitive advantage and customer value-added, which was delivered through three key elements (graph 1),
Foreign policy with foreign nations that host the Starbucks brand. Import and export tax is an expenditure that may and can become costly and profits can be lost. Other companies like McDonalds, Dunkin Donuts, and the Coffee Beanery provide consumers with an ambient environment and some specialty coffee flavors. Proximity may be the only thing required for the consumer to select the services of the rival coffee dispensing businesses.
This Marketing report comprises of information regarding Coffee Bean and Tea Leaf, a renowned coffee retailer founded in the US. This report begins with an introduction of the company that discuss the origin and elements that this report focuses on, then followed by the vision, mission and values of the coffee retailer for the coming years. Then, it discusses the situational audit of the company where in it provides information about the internal analysis using the strengths and weaknesses of the company. The external analysis continues in the form of a PESTEL analysis which focuses on the factors that affect Coffee Bean and Tea Leaf course of business. A further analysis will take the form of Porter analysis that defines the competition the
One of the main problems that Starbucks is facing at the present time is the ability to maintain national competitive advantage (Monash South Africa, 2014). Due to their local demand conditions, Starbucks tries to satisfy all customers by trying “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks Corporation, 2014). Local demand conditons consist of a company trying satisfy needs of their closest customers and expanding their competitive advantage by upgrading their strategic management policies (Monash South Africa, 2014).
By remaining true to core competency and a laser like focus effort towards quality; Starbucks has managed to analyze, adapt and create brand loyalty to their particular market and remained the top competitor throughout the coffee industry. Americans in general enjoy a good, hot cup of coffee to start their day. In any given business, seeing a torrid cup of coffee in a cup from Starbucks is not uncommon. Starbucks is one of the most popular coffee franchises in the world with locations in 62 countries. Starbucks has been around since the year 1971where they started off as a coffee bean roaster and retailer. This research paper will briefly explores, examine, and assess Starbucks quality marketing and management strategy. Additionally, this research
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.