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Home Appliances Company : Strategy for Coffee Maker Business Current Market The market size of coffe maker industry is $498.80 MM as of 2003 growing 5.3% from $473.0
part time workers in the stock option plans and subsequently has reduced employee turnover because the company is attentive to all the employees and their needs and
Julius, Baskin Robbins, Bubble Tea, and Jugo Juice. There are several Strengths for the Starbucks Coffee Company. They have a strategic use of their core competencies,
developing new marketing strategies. So let's take a closer look at what they did in one innovative strategy-planning process that resulted in profitable growth for
economy as more new company facilities (such as Starbucks Coffee International in Paris and Starbucks Coffee Agronomy Company in San Jose) popping up all over the
Submitted by josephim on April 6, 2007
Category: Business
Words: 469 | Pages: 2
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Current Market
The market size of coffe maker industry is $498.80 MM as of 2003 growing 5.3% from $473.0 MM in 2002. A survey report1) tells that 47% of coffee drinkers drink at home, 25% at work, 3% in a coffeehouse, 3% in a restaurant and 10% on the go. It also shows about how they made coffee that 8% used percolators, 3% hand drips, 56% electric drips, 1% French press and 4% espresso machines. The other report2) says most of the electric drip models examined were of little variance in overall ratings of convenience and design. In terms of price, espresso machines which are different in making process from drip types and percolators were the most expensive. But as the coffee industry expands, consumers tend to more care about quality and brand. This trend implies there will be increasing needs of higher quality and strong brand.
Creation of New Market
New products should meet needs of high quality while maintaining or upgrading the current convenience level. High prices of espresso machines can be limited in expanding across the segments. Drinkers want to drink Starbucks at their home. They want a "coffee pod" like the Apple's iPod that created a new segment in media player. High quality and reasonable prices can be realized by innovation in technology. Companies who have built technology strategy are more likely to be in the lead. A main quality point in coffee is formation of froth which is mostly attributed to pressure, water temperature and rate of mixing.
New products may not need a new distribution channel if the companies have already bargaining power. Big retailers such as Wal-Mart, Target and Costco can be main off-line distributors and Amazon.com can continue to generate on-line revenues. With technological barriers, the companies can possibly supply to other coffee makers to generate additional revenues. In terms of marketing, because new products could be different in way of use, advertisements may have...
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