Tracing Letters for Toddlers

Table of content
Table of content 2
1. Definition of Industry 4
1.1 General Overview of the Industry 4
1.2 Customer Overview 4
1.3 Overview of Industry Profitability Factors 5
2. Industry’s dominant economic traits - overview 7
3. Competitive Forces that impact competition (Porter Model) 8
3.1 Competition within the Coffee Shop Industry 8
3.2 Substitute Products 9
3.4 Power of Suppliers 10
3.5 Power of Customers 11
4. Driving Factors that are causing the industry’s structure to change 12
4.1 Expansion/Growth 12
4.2 Product/Service Innovation 12
4.3 Collaboration/Partnership 13
4.4 Image/Lifestyle 13
4.5 Technology 14
5. Competitive positions & possible strategic moves of key companies 16
5.1 Starbucks 16
5.2 McDonald’s 17
5.3 Dunkin’ Donuts 18
5.4 Caribou Coffee 19
5.5 Coffee Bean & Tea Leaf 20
5.5 Peet’s Coffee 20
6. Key factors that determine success in the future 21
6.1 Product and Service Innovation in the Future 21
6.2 Technology 21
6.3. Education About Coffee 21
6.4 Cooperation 22
6.5 Quality Control, Consistency 22
6.6 Meeting Demand 22
6.7 Role of Regulations 23
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7. Attractiveness of the industry 24
7.1. Factors in favor of an attractive industry 24
7.2. Factors in favor of an unattractive industry 25
7.3. Conclusion 26
7.4. Most likely future scenario 26
8. Appendix 27
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1. Definition of Industry
1.1 General Overview of the Industry
The coffee shop industry in the U.S. includes 20,000 stores with combined annual revenue of about $11 billion. Major companies include Starbucks, Dunkin’ Donuts, Caribou, Coffee Bean and Tea Leaf, and Diedrich (Gloria Jean’s). The industry is highly concentrated at the top and fragmented at the bottom: the top 50 companies have over 70 percent of industry sales. Coffee is one of the world’s largest commodities. The top green coffee producing countries are Brazil, Colombia, and Vietnam. Many grower countries