Sample Essay

There are different competitors in this industry. All these competitors offer stiff competition to Starbucks. These analyses of these competitors are given below:

  • Green Mountain Coffee Roasters: This company focuses on the phenomenon of staying green and staying true to the organic roots. This competitor also focuses on the corporate market of the coffee and they usually target corporate sector. There are about 100 whole bean and ground coffee selections which also includes hot coca and coffees. The company operates in USA and revenues of this company of 2007 were $342 million which depicts an increase of 51.6 %. From the previous writer. The company focuses a lot in building effective brand relationship with its customers and that is the reason why the company maintains a long term relationships with its customers. The philosophy of the organization is to develop and retain customers for a long term basis. The most important aspect of the company is its Keurig Single-Cup Brewing system that is responsible for its bottom line and top of the line growth. The biggest advantage of this organization s considered to be its multi brand portfolio and multi channel distribution strategy that allows the brand to diversify in many aspects (Starbuck, 2006).
  • Costa Coffee: This organization is an international chain of Coffee and its global strategy is giving a tough time to Starbucks. This organization is present in the Middle East and its catering the market in Asia too. This organization opted for a globalization strategy when they amalgamated with the local producers of India and this collaborative approach favors the organization. The organization is expanding quite rapidly and it’s planning to open more than 300 stores in China next year (Starbuck, 2006). That is the reason why this strategic measure is proving to be quite beneficial for the company and their market share is experiencing a boost because of this. The company enjoys a 15.5% market share which is quite good as far as the coffee industry is concerned. The financial figures of the organization are improving and strategists suggest that because of its channeled approach this organization overcome its competitors in the near future.

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