This report covers the mature premium coffee market and includes an analysis of the present external environment, generic business strategies currently pursued by major players, various tools used for analysis in formulation of the right business strategy to pursue, a review of…
This is to ensure it will acquire brand recognition as a true global brand like giant Starbucks but at the same time maintain its brand essence in a highly-competitive premium coffee market that no longer relies on price or differentiation as key success factors. Key industry drivers like the 4 Ms are briefly mentioned in relation to the coffee industry. Management theories and models like the Boston Consulting Group’s market matrix, Gap-needs Analysis and Ansoff’s product-market model are utilized to illustrate some of the key concepts in strategy analysis and formulation. Based on the last model by Ansoff, market development, product development and increased market penetration were thought to be viable alternatives. However, a closer analysis would reveal a branding strategy is the most suitable for a brand like Costa Coffee that is situated in a mature market dominated by only a few big players. This is because a brand is not only a functional concept but also an emotional one with regards to coffee drinkers, who not just drink it but to experience the ambiance as a symbol of affluence, social identity and new lifestyle patterns (Elliott & Percy, 2007:25).
There are three coffee house chains competing for preeminence in London and all over the United Kingdom and these are Starbucks, Caffé Nero and Costa Coffee. There is a smaller Coffee Republic and there are other coffee houses which are not part of a franchise (Edward, Cortinovis, Eggleton, Lee & Hermitage, 2007:110). After several years of very fast growth, the so-called premium coffee market is now in its mature stages. This means new sources of revenue growth has to be found before market share stagnates. A company has to be proactive rather than reactive and there are three possible sources of growth assuming it is alert enough: new opportunities presented by the changing external environment, develop a new strategy by monitoring emerging trends and how ...
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Government influences the operations of the companies in UK. According to British Chambers of Commerce, the cost of doing business in UK has increased to 88.3 billion pounds a year because government has imposed 40 new regulations on companies (Chinadaily, 2010).
These actions are projected to continue for the next ten years. In United Kingdom, Costa Coffee is one of the biggest companies in terms of profitability and volume of sales. It has also one of the most extensive connections among other United Kingdom brewers made practical via a network of breweries and distributors.
With the normal hotel services having numerous competitors, specializing on serving breakfast was more promising than other hotel ventures. Additionally, the venture had exposure to successful ventures in this particular field. For instance, McDonald had established itself as the leading provider in breakfast and fast foods.
It is to mention here that industry of coffee alone is worth $20 billion dollar, and it is also observed that coffee is mostly consumed by industrialised countries or nations. Coffee is mostly seen as a commodity after crude oil. Among various types of coffee, Italian espresso is the mostly consumed coffee in the world.
And so they found that they can use coffee to be the trademark of their society in terms of exporting and importing. They had come to be the producers of many products to different countries. And in this trade, the economy and industrialization had developed.
The effect and outcome of competing with the several independent Parisian coffee cafes has proved to be a success. Due to this success, the Whitbread have planned to initiate the opening up of five stores in France in the upcoming financial
The UK coffee shop sector has enjoyed a continuous growth for the last 16 years and it has emerged to be one of the most successful sectors in the UK economy. The UK coffee sector generates more than £7.2
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