Donkey Coffee And Esspresso Swot Analysis

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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

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