ANALYSING A COFFEE TAKEAWAY INDUSTRY IN UK

Analysing a Coffee Takeaway Industry in UK



Analysing a Coffee Takeaway Industry in UK

Introduction

Coffee has constantly been deemed as the favoured beverage. Nevertheless, their dominance was overtaken by drinks and soft drinks as a beverage of choice in the world in the most recent century. The cause of their decline is that coffee drinking is often considered "old fashioned" for people with more choices so narrow, especially regular or decaf. Accordingly, the coffee industry was to find a wild sequence of the difficult situation Brand identity in intense price cuts and mentions were the norm as consumers tried to shop on price as the coffee has been condensed into mere commodities. However, the advent of coffee culture in recent years, the emergence of companies like Starbucks has revitalized the coffee industry. In addition, companies such as Starbucks coffee have become an international phenomenon with thousands of branches worldwide. This work focuses on the status of an international company like Starbucks. (Allan, 1999, pp. 44-45)

Coffee Takeaway Industry

Despite the fierce competition in the coffee industry, there are still opportunities that are present in "gourmet coffee, where you can buy coffee reasoned decision process quality, image and service. To do well in the existing market conditions, organisations have to reinvent a product through the acquisition of something old and worn and commonplace as the coffee and are stranded in a certain sense of romance and identity in the same region. (Allan, 1999, pp. 44-45)

The coffee industry has a high intensity of rivalry among the main actors. It is considered a saturated market. Starbucks rivals in the market include Dietrich, Brewster's, New World, Seattle's Best and Gloria Gears. In addition, there are other alternatives that take account of restaurants, coffee bars unskilled, caffeine and other goods. Price of coffee is very unpredictable and just as the distribution agreement of coffee is very complex. (Sally, 2009, pp. 100-102)

Market Forecast

The coffee market is forecast for continued growth and expansion, without the threat of saturation in the near future. In 2004, the coffee market is estimated to have about 2,299 units and 2006 output is expected that the number of units have been increased to an estimated 2965, with the growth of branded coffee sector increased by 11% between 2004 and 2006. In fact, the chain of branded stores have accounted for most of the coffee market growth according to forecasts by industry analysts Allegra Strategies. Allegra says that although there are more independent than the branded coffee chains in 2005 and 2006 is expected to mark more independent chains will be opening. (Corby, 2003, pp. 49-59)

External Environment PEST Analysis

In analyzing the macro-environment, it is important to identify factors that in turn can affect a number of vital variables that can influence the organization's supply and demand levels and its costs (Katter and Schlesinger, 1991; Johnson and Schools, 1993). The "radical and permanent changes occurring in society create an environment of uncertainty and have an impact on the function ...