In: Business and Management

Submitted By papercunt10
Words 494
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A. Business Overview
• Opened in 1972 in Seattle Washington
• Now has 15,000 stores in 50 countries
B. Aggregate Market
• Consumers who need quality coffee worldwide
C. Participating Market
• Worldwide coffee shops
2. Market Environment
A. Industry Environment
• Industry made about $25 billion in revenues
• Major competitors include Dunkin’ Donuts, Caribou Coffee, and Panera Bread Company
• The specialty eatery industry is fragmented with the top 50 firms make up about 45% of the industry
• Market share 1.8% globally and 11.8% domestically, and about $11.7 billion in revenues in 2011
• Life cycle stage: saturation, there are many companies in the market (about 35,000), the industry is highly competitive
• Starbucks and other successful competitors use only high quality coffee from suppliers who are socially responsible, which gives suppliers an advantage and increases the cost of supplies
• Growth in the industry is stagnant since the global market is mostly saturated, opportunities for growth are in emerging markets
B. Competitive Environment
• Panera
1. Size
- Over 40,000 stores in U.S. and Canada
- $1.8 billion in revenues in 2011
- More than $1 billion in total assets
2. Key Customers
- Fast food consumers who are health conscience
3. Strategy
- Provide high quality food, especially bread quickly and relatively low cost
- Provide service in a niche market that other companies largely ignore (fast casual dining)
- Avoid discounting, keep pricing steady
4. Target Market
- Consumers who need a quick meal, but want quality healthy food that is relatively low cost
5. Strengths
- Highly differentiated service
- Best at what they do in the niche market they are in
- High quality product
- Strong brand name
- Good customer service
6. Weaknesses
- Low market share, no stores outside of U.S. and Canada
- Narrow product line,…...

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