Case Study 7 Pg. 320-324
1.) What is Starbucks’ Product?
They have a wide variety of different products. Their main product that they are well known for is their line of premium coffee products. They offer more than 30 blends and single origin coffees, hand crafted espresso and blended beverages, Tazo teas, a line of bottled frappuccino coffee drinks and Starbucks dubbleshot. They also offer an exclusive line of Starbucks Barista home espresso machines, coffee brewers and grinders, freshly baked pastries, a line of super-premium ice cream, a line of premium chocolate, sandwiches, salad, coffee mugs and coffee accessories, compact discs, and assorted gift items.
2.) What advantages does McDonald’s have in competing with Starbucks for coffee sales? McDonald’s have some advantages over Starbucks in competing for coffee sales. First they have more business on a daily basis. Serving more customers daily increases their chances at selling more coffee. McDonald’s has recently over the last few years really increased types of coffee drinks that they offer. They have similar premium coffee drinks as Starbucks, such as a Frappie which is like Starbucks Frappuccino. They now have chocolate Frappies along with hot chocolate beverages. They have also recently made their coffee a premium beverage whereas before it was more of a standard coffee. Another advantage that McDonald’s has over Starbucks is the price. For a similar drink you can pay one to two dollars less at McDonald’s then at Starbucks. The service is much faster at McDonald’s then at Starbucks. People that are in a hurry might choose to go to McDonald’s to get practically the same drink in a much faster time then at Starbucks. Price and time are the main advantages that McDonald’s has over Starbucks. McDonald’s also has a bigger variety of food items that attracts more customers then what Starbucks has. This gives McDonald’s more of an...