Industry and Competitors: Starbucks, Dunkin Donuts, and McDonald's

Analysis of Industry and Competitors
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Analysis of Industry and Competitors The proposed business is a specialty coffee shop in Miami, where there is a huge student population, and the venture would also serve the residents and visitors of the place. Analysis of the coffee industry and the consumer are increasingly informed about their choices highlighting the need to market ad brand.  The paper will highlight the industry competitiveness analysis, highlight three competitors to the venture and undertake a financial analysis of each of the three competitors.  In the food and beverage industry and coffee market there is great customer loyalty, and opportunities for new business with superior quality customer service and unique product offerings. Porter’s five forces Competitive Rivalry: High  There are diverse competitors offering unique products and services and some businesses are located across the country, and sometimes exercising some form of monopolistic competition. Espresso beverages and deep brewed coffee are some of the most popular coffee options, but the range of products is huge. Bargaining power of suppliers: medium  The bargaining power of suppliers is medium and the growth in the number of supplies will increase competitiveness and the quality of products in the market. There are many specialty coffee shops than before and as they seek high quality raw materials, the supplier have had to get the best raw materials to achieve this. Starbucks signs agreements with the supplier for large supply of coffee beans and this reduces price disparities.   Bargaining Power of Customers- Medium to High             There are many buyers with different tastes, and brand loyalty is high, but the big establishments state high prices targeting premium customers, while the more informed customers chose options depending on quality, location, price, reputation, brand and customer services Threat of New Entrants: Medium The treat of new entrants is moderate, where the big coffeehouse chains like Starbucks have a huge market value, but other locally based outlets serve different customers. New entrants can compete with the established brands, but need to differentiate themselves, focus on brand loyalty, brand image and increase market share. One of the main challenges remains access to high quality raw materials. Besides the are coffeehouse companies, there are food and beverage outlets like McDonald’s,  Threat of Substitutes: Moderate to High The threat of substitute products is moderate to high, and these are the alternatives to specialty coffee like  as there are various brand products, non-alcoholic beverages, home-made products tea, juice, caffeinated drinks  and alcohol.  Some bars and restaurants offer a   wide variety of drinks, while excellent customer service and selling premium packaged precuts is essential differentiates product and services There are various competitors including those witch national and internatio...