Content

Introduction………………………………………………………...1

Coffee Industry Overview………………………………………...1

Overview of Starbucks and Caffe Nero…………………………..2

Analysis of Starbucks and Caffe Nero……………………………3

External Factors (5 FORCES)……………………………………..3

Internal Factors (SWOTs)………………………………………….4

Generic Strategies………………………………………………….6

Starbucks' Differentiation………………………………………….6

Caffe Nero's Differentiation and Low Cost………………………. 6

Critical Analysis…………………………………………………...7

Globalization Strategy……………………………………………..8

Globalization strategy of Starbucks………………………………..8

Localization of Caffé Nero………………………………………...9

Contrasts between Starbucks & Caffé Nero……………………...10

Innovation Strategy……………………………………………….11

Conclusion………………………………………………………...13

Problems and Recommendations………………………………. 13

References………………………………………………………....15

Appendix…………………………………………………………..17

Introduction

The coffee industry has grown rapidly since the 1990s, before Starbucks emerged, people had been used to drinking low quality coffee from tins. Starbucks introduced fresh coffee made from top quality beans which have excellent tastes, moreover, it brought a culture, so Starbucks created a legend in one period which still has great influence to date. However, more and more coffee companies have been entering the markets because of consumers' large consumption, so the competition is becoming more and more intensive. Café Nero is one of those good examples, it is expanding rapidly, and is one of the fastest-growing companies in Europe.

Starbucks Bean Life display in Miami at the Latin ...

Grounds for Your Garden, the Starbucks recycling s...

The second location of Starbucks in Seattle was op...

In this report, first, we will introduce the current development of coffee industry and the two companies-Starbucks and Café Nero, meanwhile, we will explain the reason we choose the two companies. Second, the internal and external factors, which influence companies to make consistent strategies, will be deeply analyzed. Definitely the analysis will be based on previous studies and relevant theories. Third, the most important part of our report will emphasize on the strategy analysis of the two companies respectively, and those strategies could be divided into three aspects, which are generic strategy, globalization strategy and innovation strategy. In generic strategy, cost, price, social responsibilities and brand positioning will be compared between Starbucks and Café Nero. In globalization strategy, it will be point out that Starbucks has been already achieved international expansion, whereas Café Nero still...