Starbucks Porter's Five Forces

1470 Words 6 Pages
1. Dicussion
Porter's Five Forces analyzes the attractiveness and profitability of an industry by focusing on the threat level of various factors influencing that industry. These forces are listed and explained below.
Competitive Rivalry Among Businesses
Dunkin Donuts and Starbucks have a high rivalry among each other in the coffee shop industry. One reason for this is that not too many company are emerging in the coffee and breakfast industry, apart from various fast food places like McDonald’s or Burger King. The industry is now mature and also growing at a slow pace compare to 15 – 20 years ago. Most competitors seem to carry the same products but presents it in their own unique fashion in an effort to attract customers. Brand identity within
…show more content…
Having coffee shops in these retailers’ store give those customers wanting to take a break from shopping a place to rest their feet. There are also those customers who may have not have time to eat breakfast because they had to run to the store quickly is now able to stop in at Dunkin Donuts to grab something. This is a very strategic move for Dunkin Donuts as they can open a new location at a lower overhead cost and is able to see a profit much quicker than opening its own brick and matter store. They are now opening more coffee shops in places such as amusement parks, shopping malls, gas stations combo and many other places that people frequent. This market has been changer that even Starbucks is now partnering with retailers and having their coffee shop running. One such place that have partnered with Starbucks is Target …show more content…
The majority of its local shops are located in the Northeast region of the country. As the company looks to expand and open new stores they have to deal with the competition in that area. They have been slowly expanding to new areas due to competitors in that geographical region. Take for example McDonald’s Café which is located practically in every state and have shops setup in places such as airport, highways, parks and in every other shopping center or plaza. There are more direct competitions from companies such as Starbucks and Krispy Kreme that sell coffee and donuts. However, Starbucks is the company to they should watch as franchises are popping up even in more international

Related Documents