Competition analysis Starbucks.

Competition Analysis Starbucks.

• In US Starbucks competed against a variety of small-scale specialty coffee chains, most of which were regionally concentrated.
• Each tried to differentiate itself from Starbucks. The difference is in the environment of the stores.
• Examples: Minneapolis-based Caribou Coffee, California-based Peet´s Coffee & Tea
• Starbucks also competed against thousands of independent specialty coffee shops.
• The specialty coffee shops offered a wide range of food and beverages and a highly personalized service t an eclectic clientele.
• Starbucks also competed against donut and bagel big companies.
• The biggest competitor is Dunkin Donuts because in recent years had begun offering flavored coffee and non-coffee alternative.

The info we got is in page 6 of ¨Starbucks: Delivering customer service¨ in competition part.

COMPETITON ANALYSIS

1992

They had 140 stores in the Northwest and Chicago.

They compete with small coffee chains as:

• Gloria Jean´s Coffee and Bean
• Barnie´s Coffee and Tea

(Company Background, Page 2, Paragraph 4)

Starbucks competed with:

Coffee Chains

• Minneapolis based Caribous Coffee- 200 stores in 9 states. They differentiated from Starbucks with a differentiated store environment. They had an Alaskan style, which consisted in Knotty Pine Cabinetry, Fireplaces and soft seating.
• California based Peet´s Coffee and Tea- 70 stores in 5 states. They had their 60% of revenues based on the sale of whole beans. They aimed to offer the freshest coffee in the market.

(Competition, Pages 6 and 7, Paragraphs 1 and 2)

Independent Specialty Coffee Shops

They offered a wide range of:

• Beer
• Wine and liquor
• Computers with Internet
• Satellite TV

Donut and Bagel Chains

This market had 3700 stores in 38 states.

Donkin Donuts, the biggest Donut competition, had 50% percent of their sales based in coffee. Also, in more recent years, they started to offer alternatives and of flavored coffee and non-coffee alternatives as:

• Dunkaccino: Coffee and chocolate
• Vanilla Chai: Tea, Vanilla, Honey and Spices

(Competition, Page 7 Paragraphs 3 and 4)

2002-2003

Starbucks had 1/3 of America´s Coffee Bars, more than its 5 next competitors together. For example, its next competitor, Diedrich´s Coffee, had fewer than 400 stores.

Starbucks had 5886 stores and wanted to go up to 10,000 stores.

(Exhibit 2) and (Caffeinating the world, Page 7 Paragraph 2)

DIFFERENCES BETWEEN STARBUCKS AND COMPETITION IN SPECIALTY COFFEE HOUSES CUSTOMERS

For these customers, there is no marked difference between Starbucks and smaller coffee chains. They would go to any of them. Nevertheless, they find big differences between Starbucks and Specialty Coffee Houses.

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