5 Forces Analysis Of Specialty Coffee Industry

743 WordsSep 27, 20013 Pages
Customers a) This industry has a great # of customers, therefore they have less power. b) The customer makes relatively small purchases, as coffee is a generally low involvement product. c) Specialty coffee purchases are relatively small in regard to other purchases. Over the course of a consumers life however, coffee purchases can equivocate to a substantial amount. d) The specialty coffee industry offers much product differentiation. The specialty coffee industry involves great importance when it comes to which brand to purchase. e) Specialty coffee 's target consumer is relatively HIGH profit customer. This includes many with college degrees. f) Knowledge about specialty coffee has become widely available due in part to the…show more content…
Pricing amongst competition is critical. d) There are a great # of competitors in the specialty coffee industry. e) Most of the specialty coffee vendors are in the market for the sole benefit of the specialty coffee dollar. There is a high exit barrier within this industry. Potential Competitors a) In the specialty coffee industry it is more efficient to produce a larger amount in a large facility than to have many smaller
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