Topic > Donkey Coffee And Esspresso Swot Analysis - 1024

Competition from these coffee shops poses a serious threat to Donkey and much of the market share is taken away. Starbucks is a strong competitor and this illustrates the threat to Donkey. First of all, both Starbucks and Donkey have good reputations for high-quality coffee. However, if people consider awareness, Starbucks coffee will gain more recognition. According to the report “Strategic Analysis of Starbucks Corporation”, Geereddy (2013) reported that Starbucks has global brand recognition for selling the highest quality coffee. Starbucks is known for high-quality coffee, and this advantage is difficult to replace with other coffee shops. Secondly, the cost of products in Starbucks and Donkey are quite different even though they both offer fair trade coffee. Donkey buys fair trade coffee beans primarily from Dean's Bean, and switching from one supplier to another will increase the price of the coffee beans. Geereddy (2013) analyzes Starbucks' supply chain as "...coffee beans...grown in selected regions that are standard inputs, making the cost of switching between substitute suppliers moderately low." Starbucks as a global coffee shop can control the cost of coffee beans more stably and lower than Donkey, because it has its own supply chain and regular suppliers. Starbucks has more advantages in terms of cost savings, so Donkey is facing difficulties