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Costa Coffee Uk Internal and External Analysis

Autor:   •  December 19, 2015  •  Essay  •  2,376 Words (10 Pages)  •  1,703 Views

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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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