Jai Shah 5 Forces

Additionally as the company already sells tea in its

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Unformatted text preview: a large emphasis on its coffee products, and separates itself from Starbucks by pricing its coffee lower and having an assortment of flavors, including hazelnut and cinnamon. Rivalry between Starbucks and Dunkin Donuts is high. Recently, Starbucks closed 7100 stores to retrain their baristas to concentrate on customer satisfaction. Dunkin Donuts responded by increasing their store opening hours and decreasing the price of small coffee drinks to less than a dollar. (Starbucks Upgrades Espresso Machines) Independent coffee shops serving specialty coffee can also be considered rivals because, though they are not scaled nationally, they attract many customers through relationship building. In response to this, Starbucks implemented a scheme whereby baristas ask the name of the customer to write on the drink, initiating a personal conversation with them, increasing the rivalry and making Starbucks more competitive. The largest industry rival currently facing Starbucks is the McDonald's restaurant fast food chain. McDonald's is the world’s largest chain restaurant, with ‘14,000 restaurants in the United States alone and gross revenues in excess of $22 billion’. McDonald’s has recently gentrified its brand image, installing coffee bars with baristas under the sub name McCafe. The chain serves cappuccinos; lattes, mochas and the Frappe, which is in direct competition with Starbucks’, ice blended Frappuccino. The initiative has been a huge success, with McDonald’s selling more than $2.1 billion of coffee in 2...
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