Iced Coffee Industry, Competitive Strategies & Government Polices
Iced Coffee Industry, Competitive Strategies & Government Polices
Marriel Bitanga & Michael Kelly
ECO 365
November 20, 2013
Al Gourrier
ICED COFFE INDUSTRY, COMPETITIVE STRATEGIES & 2
Iced Coffee Industry, Competitive Strategies & Government Polices
Since Christopher Columbus discovered coffee beans on one of his voyages, the coffee
industry has exploded into numerous traditional brands that have become household namesakes.
Brand names such as Maxwell House and Folgers were used in the 1950’s in the United States
and is known as our standard “cup of Joe”. Over the years they have fallen behind to the
new leaders in the industry. As of today Starbuck’s is considered to be the leader in coffee
production. Starbuck’s took the regular cup of coffee and pushed the envelope with its signature
coffee blends and in the past few years their new varieties of iced coffees. Not much has
changed over the course of years as far as competition in the industry. New companies emerge
and back in the early 1900’s they are still attempting to take over the reins of who is the industry
leader. Today they accomplish this by saturating the market by selling inexpensive brands or less
quality of product.
With the failing economy Starbuck’s had to adapt to economic changes. One example
is reduction in store locations. Currently Starbucks has approximately 18,000 stores to date.
Dunkin Donuts currently is Starbucks biggest competitor with somewhere around 10,000 store
locations and still growing. Dunkin Donut is a franchised based industry. Some of Dunkin
Donut’s top executives are former employees of Starbucks and this is believed to be one of the
reasons for their success.
The "My Starbucks Idea" (2009) website stated that in 1971 Starbucks introduced iced
coffee and it was initially called Iced Marrakesh. Marrakesh was brewed with standard coffee
equipment such as the Toddy brewed at double...