Factors abound this growth are the specific higher quality of gourmet and specialty coffees as compared to commercially available ground coffee grades and an increment in the awareness of such quality differences amongst the consumers. Additionally, the company’s outlets provide ideal locations for both formal and informal meetings owing to their well-chosen locations across different states. These ideal setting have proven to appeal to the younger customers especially the teenagers and young adults. With time, the company has recognized the need and the rise in demand for different varieties of beverages both coffee based and specialty teas which the company further customizes as per requested by different customers. Caribou Coffee is generally outperforming its competition in regard to understanding the customer’s needs and thus is specifically set to take an early advantage in the growing and booming coffee industry.
In the food wholesale industry, it is easy to imitate your competitor’s products, meaning that your customer service is very important. Because it is so easy to imitate one another in this industry, a company’s reputation with its customers means everything to them. Maintaining long relationships with your customers is important to keep repeated business. One bad experience from a company can ruin your reputation and start a domino effect, leaving your company behind the competition. These companies need to have scale meaning that they sell many products for low profitability on each product to make revenue.
Due to the moderate cost of managing business as well as supply chain management, the new competitors can definitely compete with Starbucks. For instance, they can choose to lease equipment or stores and therefore the initial investment cost is relatively low for them. Since there is no switching cost for the consumer, the small coffee shop can actually compete with Starbucks at certain level. In this competitive industry, the new competitors has a moderate possibility to be successful. However, new entrants will find it difficult to compete against with Starbucks as they find costly to develop such a strong brand like Starbucks.
The general impression of Coffee buzz is that although it offers good services, people are less interested. This is based on the notion that it is a student outlet and the food menu is less interesting. Food is not only about nutrition but the pleasure and gratifying elements in it. Coffee Buzz offers food that students are familiar with but there is a clear indication that the food consumption of the food is low. This could be because of the quality and the freshness of the food.
Thus, it is difficult for new entrants to join the market. Furthermore, its unique model of doing business and the management of ambiance put the company above the rest. However, it is not completely impossible for a competitor to adopt such a strategy given the right resources and investment, and therefore, Starbucks should persistently strive to retain the level of organization that has kept it above the rest. PESTEL Analysis Starbucks faces a number of political, economic, social, technological and legal factors that affect its profitability. Gupta (2013) notes, “The PESTEL analysis is an external environment scanning tool that presents the macroeconomic factors and their impact on a business entity.” Thus, it vital for a company to repeatedly monitor its external environment, and hence, guarantee business sustainability.
The grocery store has this system where all the junk food or the “snack food” are somewhat cheap, but all the fruits and vegetables and anything else that people might consider healthy has a ridiculous price. So if anyone actually wants to eat healthy it sometimes gets hard to do so. Everyone should have the right to eat healthy. These foods should not have raised prices just because of what they are. In Food Inc. the director Robert Kenner mentions how a lot of people would like to eat healthy things, but just do not have the money to do so.
However, there are potential negative effects of coffee especially when you cannot go a day without it. If you have a moderate number of cups then there are some benefits of coffee such as the improvement in alertness and in the long term it may reduce the risk of developing Parkinson's disease, gallstones, kidney stones and liver cirrhosis. However there are several health risks: Consuming coffee on an empty stomach starts up a hydrochloric acid production. This can lead to a major problem because HCL should only be produced to digest meals and if your body has to make HCL often due to a person consuming many cups of coffee in a day, the body will have difficulty producing the chemical when it actually needs to be produced such as when you are eating a large meal. The lack of hydrochloric acid in the stomach especially effects the digestion of protein and this can be a problem as the protein foods pass into the small intestine before it is properly broken down.
Advantages With the use of accurate information that is obtained through the downstream partners, companies are able to achieve inventory efficiency. A fine exemplification would be Dell, which utilises the build-to-order scheme as part of their core competency. Such setups are capable in achieving zero inventory cost, enabling Dell to pass off these savings to end customers at affordable pricings. Information gathering is imperative in several industries whereby their products have are bulky, highly perishable, and have a low product life cycle; you generally don’t see high-end restaurants cooking their dishes beforehand only to let their dishes turn cold and lose their freshness. Instead they forecast the product demand, match their supply accordingly, and assemble the dishes as and when they are ordered.
YK emphasizes and prides its product which is the Kaya toast and preserves its authenticity at every outlet. By doing so, YK enjoys economies of scale due to its efficiency in marketing, research and promotion costs. Additionally, such strategy improves brand identity where customers may associate YK with Kaya toast and the quality of the product itself. There is a substantial level of consistency with its menu selection and quality of dishes served in outlets among Singapore and other countries as well. However, the undifferentiated targeting strategy is ineffective for the company since it is seen to appeal more to the business and corporate consumers than families or students.
For example, some food with same recipe will make people think and perceive differently base on where they eat. At the point when consumers dine at extravagant dinners with higher value, they expect that the food must be made with the freshest ingredients and they must feel and taste good. Yet when they consume at old coffeehouses with less expensive value, they may think the food is simply alright and made with not by best and fresh ingredients. As Air Asia is a low cost carrier, individuals' recognition may be it is perilous, uncomfortable and low quality administration. Yet Air Asia can change individuals' perception by publicizing, utilizing corporate social responsibility, spreading through the word of