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Unformatted text preview: levels in industry profit. Coffee Retail Industry 1) Threat on new entrants- moderate/high, because capital requirements for a coffee shop are not too high- need to build reputation - how does this impact profit? It’s lower 2) Bargaining power of suppliers- buyer (starbucks) has the power because 1 bag of coffee is ~20 cents but they sell for ~3$ 3) Threat of substitute products or services- Redbull 4) Bargaining power of buyers/ consumers What is a company’s core competency?-Pepsi’s core competency is being able to bottle beverages, distribute to stores and promote their brand. Competitors-Know strengths and weaknesses Macro-environmental Factors-Culture, understanding the culture -Demographics,-Gender-Ethnicity-Social trends, more thrifty, health and wellness concerns, greener consumers, privacy concerns, time-poor society-...
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- Spring '08
- Marketing, bargaining power, coffee retail industry