Starbucks coffee and dunkin donuts

Case Study: Starbucks Coffee and Dunkin Donuts al Affiliation Analysis of Two Mini Case Studies This paper gives an overview of the swot analysis of Starbucks coffee and Dunkin donut company with a cross- case analysis of the two companies.
Starbucks SWOT Analysis
At the moment, both in sales volumes and the number of stores, Starbucks coffee is the largest coffee chain not only in USA but also in the world over. According to varied sources and various speculations, the company is also considering expansion into the bakery business (Horovitz, 2012).
Strengths: Starbucks is backed by a strong capital and financial foundation. Being an international firm with global recognition, Starbucks developed strong brand loyalty and a large customer base. Starbucks have also been proactive in environmental conservation by building their new stores from recycled material with emphasis on natural lighting in order to conserve electricity.
Weakness: Starbucks have localised majority of their stores to the USA and if the volume of their growth was to decrease so would the value of their stock.
Opportunities: Due to its global recognition, Starbucks has the opportunity to expand their international market in order to reimburse for any diminish in the US market share. They als have a great opportunity of product diversification
Threats: There is the danger of new businesses and hence stiffer competition. In addition there is the threat of price increments in the raw material.
Starbucks Strategy
The company has a strong branding strategy that makes their presence felt wherever they are located. In addition, to protect them from negative trend cycles, they are in the process of diversifying their specialties into baking and fresh fruit juice.
Dunkin Donuts SWOT Analysis
The company is also an American based company, which, since its founding in 1950 has developed to be one of the principal coffee products chain in the world over with a total of 15,000 outlets in 37 different countries. Over time the chain has developed to include and serve over 1,000 items on their menu. The company’s primary competition over coffee sales is Starbucks coffee company.
Strengths: The Company has a very strong name that has been established worldwide. This has created a strong brand loyalty among the customers. In addition, the business has a wide assortment of pastry from which the customers can chose from. Further, the quality services provided to customers and their retention strategies are a key strongpoint.
Weakness: Dunkin Donuts still penetrated into the emerging markets which can be a huge market segment. The constant rift between the company and franchisee owners is also a major weakness.
Opportunity: The Company has a huge opportunity to increase its revenue and customer base through effective online marketing. There is also great room for expansion into newer economies and regions of the world which they have not tapped into. In addition, there’s an opportunity to diversify by introducing low calorie snacks.
Threats: Dunkin Donuts is faced by the trend cycle threat that is seeing people move to healthier eating habits. The company is also under constant threat of competitors in the market.
Dunkin Donut Strategy
The company’s strategy is sort of a different approach from the norm. Instead of putting emphasis on the product and the menu, the firms aim to achieve full customer satisfaction by provision of quality service and the introduction of strategies that facilitate customer retention.
References
Horovitz, B. (2012, June 04). Starbucks buys sanfrancisco bakery chain. USA Today, Retrieved from http://www.usatoday.com/money/industries/food/story/2012-06-03/starbucks-bakery/55382660/1

You Might Also Like