Dunkin Donuts Vs Starbucks Essay

Dunkin Donuts Vs Starbucks Essay-13
S with their products and price its offer and have many franchises located around, therefore, it is very valuable as its help company to gain market share. According to annual report 2013, the revenue has been increased from 2.29m (2012) to 2.49m (2013). S is also rare because most of the coffee chain only have fewer location and not compare to the share size and abundance of Dunkin’ Donuts in the eastern U. However, franchises business model is susceptible to imitation by other companies as there are many other quick service restaurant like Starbucks, Mc Donald who have become experts in franchising their own business model.

S with their products and price its offer and have many franchises located around, therefore, it is very valuable as its help company to gain market share.

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After that, SWOT analysis also done to make an understanding on the strengths and weakness of the company and to identify the opportunities and threats for the company. Higher reputation for product quality and Grab & Go concept that brings fast and convenience service.

Bargaining power of supplier is low for Dunkin’ Donuts because there are not only one suppliers who supply breakfast items and coffee beans; and the supplier does not have much bargaining power as they typically will be in a contract.

Therefore, DD has offer store-bought alternatives in order for customer to seen as a substitutes that poses a threat of profit even though the profit margin on these product are low.

2.1.5 Rivalry among Industry There are few most prominent rivals of Dunkin’ Donuts such as Starbucks, Mc Donald. [Online] Available at: https://sites.google.com/site/starbucksanddunkindonuts/business-strategy/vrio-analysis [Accessed 30 July 2014]. Dunkin' Donuts procurement goes national, United State: supplymanagement.

2.1.3 Threat of New Entrants The threat of entrant in the competition with Dunkin’ Donut is low except Starbucks because its need a large amount of capital associate with the real estate.

Although it can be still operate in small scale but it still need competition to incumbent firms with franchise. With 120 years of franchising experience, Dunkin Donut brand is one of the world most recognized and beloved coffee brand in America (dunkinfranchising.com, 2014). They have a 94% brand awareness level, which difficult for any other company to imitate. Describe the targeted segment(s) of each Starbucks and Dunkin’ Donuts. Discuss the competitive advantage of each Starbucks and Dunkin’ Donuts. Compare and/or contrast the positioning strategy of Starbucks and Dunkin’ Donuts. Discuss how Starbucks’ strategies have changed since its early days? Discuss how Dunkin’ Donuts’ strategies have changed since its early days?Dunkin’ Donut has state their brand vision consistently over the place making it extremely well-known which make them become market leader in sales of hot, decaffeinated and flavored coffee, iced coffee, bagels, donut and muffins with affordable price. 2.2.2 Franchises Business Model Dunkin’ Donut have a very strong presence in the Eastern U. Overall we could determine that the quick service coffee industry is an attractive industry to the incumbent firm because of the lower power of both suppliers and buyers and low threat of entrants. 2.2 VRIO Analysis 2.2.1 Brand Image “Coffee for the Average American” Dunkin’ Donuts focuses on their product and prices that are preferred by and appeal to the working middle class American. In 2012, Dunkin’ Donuts has sign long term supply chain agreement with National DCP (NDCP) which has bring benefits on providing long term agreement with company for the procurement and distribution of products; develop more streamlined system, consolidated cooperative board structure and greater consistency in supply and distribution service levels to all U. 2.1.2 Bargaining Power of Buyer Dunkin’ Donut customers retain low bargaining power because there is low switching cost for customer to choose another supplier of coffee, donuts and other breakfast items. This is because DD has a higher reputation for higher grade of coffee at reasonable price and introduce a set menu by combine food with coffee at a reasonable price. Appendix 1: VRIO Analysis of Dunkin’ Donut Resources or Capability | Valuable | Rare | Inimitable | Organized to Exploit | Brand Image “Coffee for the Average American” | Yes | Yes | Yes | Yes | Franchises Business Model | Yes | Yes | No | Yes | Table 1: VRIO Analysis of Dunkin’ Donuts Appendix 2: Internal and External Environment of Dunkin’ Donuts Internal Analysis | External Analysis | Strength: 1.


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