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Price Leadership in Coffee Shops - Coursework Example

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These coffee shops are into continuous expansion, which means they substantially receive tremendous amount of acceptance from their respective target markets. In 2010, Nero had more than 400 branches in the UK. Today, as stated in its website, Costa has more than 750 branches in…
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Price Leadership in Coffee Shops
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Price Leadership in Coffee Shops

Download file to see previous pages... All of these coffee shops have specific strategic moves for them to obtain substantial market share, competitive advantage and long-term existence in their industry. Their ultimate goal is to increase profitability, which is the bottom line. However, one of the obvious strategies that can be identified when it comes to how these coffee shops compete with each other is based through the price of their product offerings.
The proponent visited these three coffee shops and recorded the recent prices of their product offerings which include Cappucino, Cafee Latte, Chai Latte, Americano, Mocha, Espresso, and Hot Chocolate.
The actual raw data gathered by the proponent are shown in Appendix 1 to 3. Common product offerings among the three coffee shops are Cappucino, Cafee Latte, Americano, Mocha, Espresso and Hot Chocolate. Each of these product offerings has corresponding three kinds of prices namely for small, regular and large categories.
The corresponding prices of each category of offerings are shown in Tables 1 to 3. For visual identification of differences in the respective prices of the offerings of the three coffee shops, a bar graph is used in plotting the raw data from Appendix 1 to 3.
In most of the categories of product offerings from among the three coffee shops and as shown in the previous tables, Starbucks seems to be in the lead when it comes to pricing. From regular category of product offerings, Starbucks’ prices for its product offerings are relatively higher than those of Costa Coffee’s. The same trend is observed from regular to large category types of offerings. Starbucks relatively prevailed over than the prices of Costa Coffee and Caffe Nero.
As stated earlier, Starbucks had more than 700 stores in 2009 and more than half of them are in London. This company is still growing and in fact, has dominated in its industry. The very proof is its ...Download file to see next pagesRead More
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