Coffee Wars : The Big Three Essay

1422 Words6 Pages
Coffee Wars: The Big Three: Starbucks, Costa Coffee and Dunkin’ Donuts

1. Introduction
Coffee – for some, a day cannot start without it. Many daily rituals include it. Coffee can be seductive, enticing, and addictive. Instead of simply drinking caffeinated, coffee consumers are trying different types of coffee, such as cappuccino, mocha, espresso and latte. Consumer demand for coffee is ever increasing, and as consumers drink more and more coffee, the quality and value become more and more crucial. Equally important, the coffee shop industry competes for market share on the basis of pricing, product differentiation, and expansion through franchises. Hence, there are some ways to improve the quality and value of coffee, one of the ways is by integrate, collaborate, and improve the product value chains (Dudovskiy, 2015).

Subsequently, in order to understand how these companies’ capabilities can lead to distinctive competencies, it is essential to review the history of Starbucks and its major competitors. Although the number of companies attempting to enter the coffee shop industry, the primary competition right now is coming from Starbucks, Dunkin’ Donuts, and Costa Coffee. Thus, this report is going to review the unique capabilities, core value chain and generic strategies of Starbucks, Dunkin’ Donuts, and Costa Coffee companies.

2. Value Chain Analysis of the Big Three
A value chain is a series of activities that add value to a product during every step of production

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