Starbucks Vs. Dunkin Donuts

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Introduction Coffee has become a significant part of lifestyle of numerous people. Starbucks has opened its first coffee shop in in Seattle, Washington, USA in 1971 (“About Starbucks,” 2014). The Starbucks is very popular today and has more than 6,000 locations in over 30 countries. In addition to coffee and espresso drinks, people now enjoy Tazo tea and Frappuccino (“About Starbucks,” 2014). The main target of Starbucks is to be the consumer’s favorite coffee shop. The globalization of the businesses increases competition in the food and beverage industries. Starbucks is the most successful and competitive coffee chain on the market. The aggressive strategies of expansion pushed the competitors such as McDonalds or Dunkin Donuts…show more content…
It has few main strengths including high quality of service and products, established brand loyalty and store location in high traffic areas. Moreover, Starbucks is known for their strong relationships with suppliers. While being well known coffee house in the world, Starbucks promotes its own culture by providing high quality service and treating employees fairly. Finally, Starbucks communicates with customers via social media, such as Facebook, Twitter, and Instagram and keeps customers engaged (“About Starbucks,” 2014). Starbucks has “My Starbucks Idea” section on their website, which gives opportunity to the customers to express their ideas about current products and to share their ideas about future products. Weaknesses Weaknesses of the Starbucks are high pricing of their products, being dependable on the suppliers, sometimes negative public opinion of their products because of the price. In 2011 the average price for pound of coffee in Starbucks was around $2.76 (Nicholas, 2011). According to Russian Federation Federal State Statistics for 2012 the total average nominal wage of Russian employees is 26822 rubles and equivalent to 757 Canadian Dollars. The products from Starbucks are highly priced and sometimes even overpriced because the cost of coffee beans is low. Starbucks establishes the prices not only based on the cost of the beans but mostly relaying on their well established brand and brand

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