Imagine you are part of a strategic planning group at Starbucks that is considering developing a new proposed product.
The marketing director has asked your team to do a competitive market analysis to determine the product's potential success.
The analysis will focus on your primary competitor in the product's market (Dunkin Donuts).
Write a 400-600-word paper analyzing the current market conditions.
Address the following topics:
- Any issues or opportunities your organization faces that affect its competitiveness and long-term profitability with regards to your product: This may include but is not limited to the following elements:
Price elasticity of demand
The relationship between the amount of labor & capital employed and the law of diminishing marginal productivity
- Factors affecting variable costs, including productivity and others that change the supply of and demand for labor
Make recommendations on how your organization can maximize their profit-making potential and successfully compete in the new market.
Consider the effect your recommendations may have on marginal revenues and costs.
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Starbucks which started nearly as a monopolist in the coffee industry was soon followed with heavy competition from Mc Donald’s and Dunkin Donuts. Till the year 2008, the company’s primary objective to maximize its revenue is through increasing the number of its retails stores, thereby increasing its presence in the US. But its pace of growth in retail stores reaching more than 8000 in 2008, it had to slow its pace of growth by market expansion. However it is still expanding to European and Asian countries (Higbee, Liaw, Ting, Tjho, & Ton, 2008)....
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