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Coffee Competitors Starbucks

Competitive Structure of the Coffee Industry

Competitive structure for any industry os very crucial to the business. With the structure it is to help with a better picture of the industry overall as well as identifying the competitors in the market. Competitors can come in both forms either direct or indirect. Based on the reseach that have been carried out, for Gloria Jean's there are three major competitors within the coffee industry and also several indirect competitors. The main objective of this structure is to identify the major competitors but it is advisable to know the indirect competitor as well so that the company could achieved an overview of all the possible rivarly.

Direct Competitor

The direct competitor for Gloria Jeans Coffee would be Starbucks Coffee and Hudson's Coffee. These two coffee chains are the largest coffee chain in Australia

(Gee 2006).

As for Starbucks Coffee it could be one of the largest chain because of the strong branding image towards their coffee. Starbucks first started its business in Australia at the year 2000. At that time it was growing slowly because all stores are company owned and none are franchised as to compare with Gloria Jean's. But Starbucks Coffee is slowly picking up by opening more stores especiallly in the malls and its more a franchised business now.

For Hudson's Coffee, it a purely 100% owned and a fully operatedcompnay by Australian. Hudson's Coffee started out firstly in Mellbourne 1998. It now has over 30 stores in Australia and has begun to franchise its operation to achieve more rapid growth (Coffee the Australian Way 2006).

With regard on the idea that the competitors for Gloria Jean's coffee is using the franchised method on doing business as well as the strategic way Starbucks Coffee used to classify its product uniqueness that is different from the others. This is where Gloria Jean's how to look into and tap its market share back across the countries which Starbucks had taken over.

Indirect Competitor

Apart from the two main competitor, Gloria Jean's Coffee is also facing with its indirect competitors such as;-

  • Dunkin' Donuts
  • Krispy Kreme
  • McDonald's
  • Independent Espresso Bars
  • Coffee Club

As for the donut stores such as Dunkin' Donuts and Krispy Kreme apart from the donut they do sell beverages such as juice, coffee and tea. When customers drop buy to have the donuts at the same time they are able to have coffee at the store as well and it is not much difference than the other big establish coffee chain. National doughnut-shop chains, such as Dunkin' Donuts and Krispy Kreme, may prove to be a more serious competitive threat. Dunkin' Donuts has been particularly aggressive of late, appealing to the blue-collar customer with a new line of espresso drinks (Coffee industry forum 2005).

Where else for McDonald's they are also now selling coffee using the arabica beans as well for its customers there is a free re-fill of coffee during breakfast hours. Besides in some other countires such as Tokyo, Australia, United States they are advertising and selling its McCafe which is coffee. McDonald's diversify the by previosuly selling just the arabica coffee to several McCafe. The McCafe consist of latte, mocha, cappucsino, espresso, ice latte, vanila steamer, ice mocha and premium hot chocolate. This might attract customers to actually goind to McDonals's to have coffee and the price are relativle cheaper than Gloria Jean's. In March, Consumer Reports magazine reported a taste test of basic black coffee found McDonald's stronger blend beat brew from Starbucks, Burger King Holdings Inc. and Dunkin' Donuts Inc (Bloomberg 2007). Besides McDonald's do serve biscotti, just like Starbucks and other coffee chain.

Independent Espresso Bars are also an indirect competitor as well. One reason for this is that unlike in the United States and Asia, Australians already had decent espresso before the chains came in (Coffee the Australian Way 2006). In addition some customers would like to visit these espresso bars because they just like how the coffee is made using the traditional way rather than using the coffee machines like the rest of the coffee chain. The other major gripe that Australians have with chains is their increasing use of fully automatic and semi-automatic espresso machines rather than making espresso and steaming milk the traditional way using manual espresso machines (Coffee the Australian Way 2006).

In conclusion, it crucial to develop a competitive structure to overview the most aand smallest possible outcome of competitors that could harm the coffee business. From the research in the external as well as the internal analysis, coffee industry in general is of highly competitive nature. There are more and more other companies of a smaller independent coffee stores are coming up.


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