An organization’s foremost competitors and its, strengths and weaknesses with regards to a particular sector are classified via Competitive Profile Matrix in relation to their competition. It acts as one of the most useful instrument in communicating with the strategic attributes to in regards with a rivalry generated amongst the similar brand-type organizations. The Internal Factor Evaluation Matrix (IFE) consists of the internal factors and the External Factor Evaluation Matrix (EFE) consists of the external factors, which together when generated creates the Competitive Profile Matrix (CPM).
CPM marks to be uppermost forum to fabricate a company’s profile, but has few weakness linked to itself. The Critical Success Factors (CSF) of a particular firm only rates between a time-gap of 1 and 4, forming non-uniformity within the firm due to the baggage, which is one-sidedly assigned by the evaluators. The overall scores that are obtained for them particular companies then expose the company’s strengths and weaknesses but are considerably indirect in retrospective for that firm as people opt to go for their loyalties regardless of figures.
Few of the leading companies in the food industries who provide food for the customers and believe in the ‘Quick Service’ are shown below.
Starbucks being one of the top 5 leading global coffee chain, starting off from the U.S., has been experimenting with their own long-term strategy of branching out their principal offerings of away form only beverages. Bearing in mind, coffee, is almost a commodity for a common man, this strategy has helped Starbucks redesign their own brand and start differentiating with the fast food brands too.
As compared with the top 2 competition for Starbucks, McDonalds and Dunkin Donuts, it could be seen from one of the latest McCafe Campaign, which was introduced by McDonalds in which it was shown them selling one of their finest coffee drink for a discounted rate as compared to that of Starbucks. Another such campaign, which was launched by Dunkin Donuts, showed them using their tasty donuts and the entire menu as a catch comparing McDonalds, as it was, made clear form the campaign that the customer had a choice to select between coffee or a coffee and a donut combo.
This was before the most recent expansion in this food sector for Starbucks, that mainly focused for the Starbucks in the U.S. comprises of serving the La Boulange Pastries, one of them bakery which was purchased by the firm for $100 million, and the Evolution Harvest Granola Bars, which also was purchased by the firm for $30 million. In the U.K. Starbucks, a new food range has been launched namely that of ‘Duffin’, which serves a doughnut and a muffin cross serving, has been one of the star product across the ocean.
The product qualities and the varieties are mentioned in below in bullets.
- McDonalds, with a variety in Hamburgers, Sandwiches, Chicken, Spaghettis, French-fries and breakfast meals, with the help of traditional media, it has generated over $787.50 million with a steady growth of 2% every year and over 2.8% of total revenues.
- Dunkin Donuts, serves a small range as compared to that of McDonalds, which comprises of Donuts and Sandwiches, Burritos, Burgers and breakfast meals, has generated over 5% of their advertising funds of gross retail sales through 1 million download hits for their mobile application.
- Starbucks, on the other hand provides the premier level of coffee by brewing its coffee on its onsite brewery. With the entire buzz on social media and Internet, the brand marketing for Starbucks has seen a rise of 29% with $16.47 billion in 2014 generated in the total revenues.
With the rise on social media and the fan base hitting the 36 million mark on Facebook, the net revenues for the company has grown up to 14%. Diversification is one for the ultimate strategy, which is available for Starbucks to raise their sales in this coffee market. This market is seen to be too replete for the market penetration strategies to help the sales rise hence marking them as short-term goal profits. With over 23,000 stores worldwide of which roughly over 13,000 are in North America distinctively.
Besides having a vast range of beverage and food options lately, Starbucks, has a very small window of development for future products unless it involves in targeting co-branding with some traditional competitors.
LinkedIn/SlideShare. 2013. Starbucks Competitive Profile Matrix. [ONLINE] Available at: http://www.slideshare.net/fimportado/starbucks-competitive-profile-matrix [Accessed 22 May 2016].
Josh Blatchford. 2013. Starbucks – Related Diversification. [ONLINE] Available at: https://manifestedmarketing.wordpress.com/tag/starbucks-ansoff-matrix/ [Accessed 22 May 2016].