Costa Coffee Uk Internal and External Analysis
Autor: Debsankar Das • December 19, 2015 • Essay • 2,376 Words (10 Pages) • 1,715 Views
Costa Coffee: UK
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Word Count: 1992
Executive Summary
Costa Coffee is the biggest coffee retailer in UK. It has more than 50% market share in the coffee industry. Costa Coffee is the only coffee retailer who serves handmade coffee among all the leading players. Costa Coffee has cemented its leading position by serving high quality coffee at a reasonable price. It also sells coffee machines. Although the GDP growth rate of UK is hovering around 1.5% but the coffee market is seeing a double digit growth. Coffee shops are becoming a place of hangout and gathering. However, the competition in the market is increasing as more and more companies that are primarily in other businesses have started including coffee in their menu. Starbucks, Nero and Coffee Nation are the main competitors for Costa Coffee presently but in future it may face stiff competition from fast food chains and local players serving gourmet coffee. Costa Coffee can maintain its growth by aggressively expanding its outlets by partnering with hotels, restaurants, offices, universities and transport hubs. It can also create a brand of loyal customers through social media marketing, loyalty programs and rewards packages. Finally, the company should continue to evolve its sustainable coffee supply chain to meet government and environmental regulations and stay ahead of competition in terms of high quality of coffee and low cost of procurement.
Table of Contents
Executive Summary
Introduction
PEST: Purpose and Business Benefits
PEST Analysis of Costa Coffee
Political
Economic
Social
Technological
Porter’s Five Forces Analysis: Purpose and Benefits
Porter’s Five Forces Analysis of the Coffee Industry in the UK
Threat of New Entry
Bargaining Power of Suppliers
Threat of Substitutes
Buyers’ Power
Rivalry
Opportunity for Costa Coffee
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