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DESCRIPTION
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Name Outlets Mkt share Costa Coffee 1,342 40.4% Starbucks 743 30.7% Caffè Nero 490 14.0% AMT Coffee 65 1.7% Caffè Ritazza 55 1.4% Café Thorntons 37 0.9% Esquires 35 0.8% Coffee Republic 29 0.6%
The total of branded coffee shops soared from 748 in 1999 to 5,246 by Dec 2012. There were 4,831 non-specialist outlets at Dec 2012, up from only 522 in 1999. But in 1999 there were already 4,100 independents, up to 5633 by Dec 2012.
•Strength
•Famous brand which is associated with
high quality
•People like Starbucks atmosphere
•Starbucks has many outlets and often is in
high class locations
•Well trained and treated employees
•Weakness:
•High price products
•Coffee quality is not as good as reputation
•Aggressive expansion
•Unhealthy products
•Opportunities:
•Launching new products/product extension
(e.g. tea, healthy, premium, co-branding)
•Capturing new markets (retailing) and new
consumer groups
•Selling more wholecoffee beans and
equipment
•Develop in non high street areas
•Threats:
•Growing competition within the Coffee
Outlet industry and new competition from
Fast Food restaurants
•Lack of ownership of coffee farms
•Global crisis/financial resources
Starbuck
•Strengths:
•has products that boast of a very powerful
retail.
•a reputation for value of money,
convenience and a wide variety of products
•has grown significantly over the years, and
has experienced global expansion.
•Weaknesses:
•a weak control of its empire, despite its IT
advantages.
•operates globally, but its presence is located
in only relatively few countries worldwide.
•lack the flexibility
•Opportunities:
•Taking over, merging, or forming strategic
alliances with other coffee companies
•expanding various consumer markets, such as
those in China and India.
•diversification of the company’s branches
from large super centers to local-based sites.
•continuously expanding
•Threats:
•is the target of competition, the company to
beat
•might be exposed to political problems in the
countries where the company has operations
•Intense price competition
•The latest developments in information
technology which could possibly change the
markets
Costa coffee