Dunkin Donuts Case Study

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Since year 1987, the specialty coffee industry has come a long way, both in terms of product variety and competitive competition which is different from the previous days when Starbucks is needed to compete with the small-scale and other local coffee retailer. The coffee industry has now grown globally and Starbuck are required to compete with some of the international organisation with different size and exposures. Although all of these competitor all serve specialty coffee but somehow they differentiate themselves from Starbucks in one or more ways and each of them have a strong characteristic to attract the customer. The two main competitor that Starbucks faced is Dunkin Donuts and McDonald's. Although both of these companies are quite…show more content…
However, before Dunkin Donuts become such successful, they actually face problem because at first they only focus on selling their donut and did not care about anything even coffee. Luckily, in year 1990 Dunkin Donuts has begun to putting more emphasis on the growth of its coffee business and this has change their story. Dunkin Donut was first introducing their specialty coffees and drinks in the early of year 2000 and start to change themselves from a donut shop into a coffee shop. At 2006, the company has officially declared a war against Starbucks by differentiate themselves as the-cost-effective premium coffee seller which aim to offer the quality product with a more reasonable price. Through this characteristic, they have successfully get their customer from American and even the customer from the other country. Moreover, Dunkin Donut also has put in massive of effort on their coffee beverage which eventually lead to an increase of types, styles and flavours in their coffee product line. They serve espresso, cappuccino and latte in an assortment of flavours including French vanilla, hazelnut, cinnamon and other numerous and exciting flavours. Therefore, through all of this characteristic, Dunkin Donut has become the main competitor for Starbucks and most of the Dunkin Donut customer are actually those customer which unhappy with Starbucks customer service and their stingy

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