Starbucks vs. Dunkin Donuts Company case study

Starbucks Products: coffee and higher-end snacks

Products and prices: grande latte- $3.65, chocolate croissant- $2.75

Starbucks is online with an app and at local stores across the country

Dunkin Donuts Products: coffee, donuts and other snacks

Products and prices: medium coffee- $2.49, 1 donut- $0.99

Dunkin Donuts is also online with an app and at local stores across the country

Starbucks uses seasonal items as a promotion method, like this limited edition pumpkin spice latte for fall

Dunkin Donuts uses local celebrities and teams to promote their company

Dunkin Donuts SWOT

Strengths: strong brand name, brand loyalty, effective marketing and advertising, world-wide chain

Weaknesses: competition, rift with franchise and owners (suing them)

Opportunities: to increase international presence, lower calorie items, to increase online marketing, reach a wider market of people in less developed countries

Threats: people trying to be healthier, competition from local bakeries, difficult to get new customers

Starbucks SWOT

Strengths: strong brand image, global supply chain, business subsidiaries, brand loyalty

Weaknesses: expensive, generalized standards for products, imitatable

Opportunities: expansion internationally, diverse product mix, new/more partnerships/alliances

Threats: competition from lower cost places, imitation, independent coffee house support (opposing large chains)

Dunkin Donuts is a better company because they are cheaper and attract a much wider range of customers with very strong brand loyalty and have better advertising and marketing than their competitors. If they get their franchise in line, they will be a very strong company.

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