Question

Please provide an economical model using the current coffee industry? Who are the leaders in the coffee industry and how are they successful? What are it's strenghts and weaknesses in the economical model (SWOT analysis? Please provide references.

Answer 1

The three leaders in the coffee industry are Costa, StarBucks,Caffe Nero.

In an Economical model if we analyse the demand and price of the two leading coffee industry. Where when any of the one company adopt new strategy to attrract more customer, the price of other automatically effects to some extent. The other one also start adopting attractive selling techniques.

They have been successful because they offers coffees, teas, hot chocolate, slishies, and other variety of treats which go well with the drinks. Their USP is that they have the Best Coffee Beans and added to it thry have the huge variety of products. They serves the delicioused and quality oriented products.

The SWOT Analaysis is a process through which we understand the companies' Strengths and Weaknesses and identifies the companies' upcoming Opportunities and Threats.

Strengths of Costa are as folllows :-

1. It is the Seconf Largest Producer of cofee in the world

2. First largest producer in the UK

3. Uniqueness and Good Taste

4. First Mover Advantage over its competitiors

5. Holds the Global Recognition

6. Variety of products

7. Good taste

8. Quality oriented products

Weakness of the Same are as follows :-

1. Product offered are quite Expensive.

2. More Expansion required - This is because Costa has only 31 outlets whereas Starbuks has aorund 70outlets.

3. Lack of Markeing and Advertisement - It has been seen that the Costa Coffee doesnot spent much on advertisement. in order to attract more Customers it has to change its advertiisng and marketing strategies.