SWOT Analysis
Competitors
Starbucks
Strengths
 Strong
Weaknesses Opportunities
brand  High prices of  Global
image.
the product.
 Competition
Expansion.
against
 Strong financial  Susceptible to  Expansion
performance.
product
 International
 International
offerings
chain of stores.
 Quality
of
products.
 Already known
worldwide.
 Gender-Neutral
Restrooms.
 Further
 Some product
supply chain.
of
retail networks.
imitation.
are
diversification of
 Install
traditional and
standards.
prices.
 Aggressive
own
delivery service.
differentiation.
 Profitability
low
bean prices.
 Price
cultural
with
 Rising coffee
products.
products.
countries’
coffee shops
product
not aligned with  Innovative
some
Threats
competition
with local and
multinational
companies.
 Disruption to
may greatly be
its
affected by the
supply chain
price
due to local
of
products.
raw
global
or
global
issues.
 The
Corona
Virus
Pandemic.
Café de
Lipa
Strengths
Weaknesses
 Local Brand.
 Variety
 Product
of
Food options.
 Brand Image.
 Supplies.
Opportunities
 Benchmarking
Threats
 Direct
and
 Partnerships.
Indirect
 Brand Marketing.
 Expansion.
Competitors.
 Significant
 Product
differentiation.
 New Entrants.
design element.
development.
 Lacks character.
 Technological
 Competitor’s
 Trends.
 Deluxe instant
advancement.
coffee.
target.
Dunkin
Donuts
Strengths
 Global
Weaknesses
 Slow expansion.  Offer
operations.
 Superior
 Lack of variety.
 Direct
franchise
indirect
strategy.
competition.
 Strategic
supply
chain
management.
 A strong niche.
relations
poor.
Threats
healthier  Intense
options.
competition.
and  Expand market  Shell
presence.
operations
are
life
of
products.
 Strengthen
 Franchise
branding.
 Great
Opportunities
 Global
in
and
pandemic
emerging
recession.
markets.
 Rising costs.
 Offer
variety.
more  Increasing
health-conscio
usness.
McDonald’s
Strengths
Weaknesses
 Strong brand  Franchise
image
 High
value
Initiatives and
innovations
 Product
safety
protocols
Brand Image
food  Offer
image
 Aggressive
competition
 Employee
Quality
 Health
 Unhealthy
and
Innovation
chain  Rebuilding
disruptions
 Technological
 Known
 Product
business model
brand  Supply
Opportunities
dissatisfaction
healthier
food options
 Offer discounts
and freebies
 Global
Expansion
Threats
 Intense
Competition
 A
risky
investment in
technology
 Rise
in
consumer’s
health
consciousnes
s
 New trends in
fast food
 Misalignment
delicious
of
meals
and
traditional
cultural
standards
some
countries
of
Cups &
Buns
Strengths
 Highly
motivated
staff.
 Team-based
culture.
 Budget-friend
ly price.
 Positive
attitude.
Weaknesses
 Low
Opportunities
Threats
brand  Attract customers  Increase
awareness.
 Substitute
competitive
products.
 Strong existing
competitors.
through
special
product offerings.
 Improve
overall
in
supplier
costs.
the  Weak
customer
experience.
bargaining
power.
 Build our brand  Aggressive
awareness.
 Broaden
competitor
our
behavior.
product offering to  Limited cash
target
new
 The
customers.
 Develop a loyalty
program.
service.
customer
becoming
 Implement
home
resources.
a
delivery
more
price
sensitive.
PEST Analysis
Company
Cups &
Buns
Political
Factors
 To
Economic
Factors
Sociocultural
factors
Technological
factors
comply  Increase in the  To increase its  New
with laws and
shops
regulations on
spending
the
ingredients.
business
permit
for
revenue with the
coffee-specific
increasing
appliances, such
demand
within  Increasing the
for
coffee culture.
as
coffee
grinders,
drip
and
state and local
sustainability of  To attract more
machines,
government.
business
customers with
espresso makers,
processes.
its
have
health-consciou
easier and faster
s products.
for the company
 To
with
comply
tax  Growth
the
policy
and
mandatory
developing
SSS,
 Growth with the
countries.
benefits such  Increase
as
of
in
linked
made
it
to produce coffee.
small  Has
the
interest
rates
independent
opportunity
to
PAGIBIG, and
and
labor
coffee shops in
create its social
PHILHEALTH.
costs.
the community.
media sites linked
with the services,
to
attract
customers.
more
Porter’s Five Forces Analysis
Porter’s Five Forces
Analysis
The coffee industry is already dominated
by
a
number
of
large
established
corporations. Starbucks is the world's
most popular brand, followed by Dunkin
Competitive Rivalry
Donuts and McDonald's, with Café De
Lipa being the well-known brand in the
city. Cups & Buns competes in the local
and
global
market
with
well-known
companies that have huge budgets and
large resources. Competitive rivalry for
Cups & Buns is high.
Customers’ bargaining power is high for
the reason that there are so many coffee
shops to choose from without having any
radical differentiation. Also, brand identity
has a large impact, and the smaller the
Bargaining Power of Buyers
number of customers, the greater the
power of the buyers.
Customers have
brand loyalty, but it is not strong enough,
and customer switching behavior in the
coffee sector is substantial, with little or
no switching cost. Buyers have the
choice of selecting from a variety of
international and local brands, which
increases consumer power, and are
mainly quality sensitive which may or
may not willing to pay higher prices for
premium quality products.
Suppliers’
bargaining
powers
are
moderately little and immaterial (low)
since the industry where Cups & Bun is in
Bargaining Power of
Suppliers
has a vast and diverse supplier base from
which enterprises can choose, putting
them
in
a
dominant
position.
Furthermore, Cups & Buns has many
options to look for wholesale and bulk
suppliers
that
highest-quality
equipment.
can
provide
the
food,
tools,
and
Suppliers can generally be
traded-out but they have the power to
control the prices of their items.
Because the number of barriers to the
market entrance is low, the threat of new
entrants in the coffee sector is high. As
there is no need for a large amount of
capital, it means that the capital need is
Threats of New Entrants
not
a
barrier
for
newcomers.
The
essential abilities are not highly technical,
but they are trainable, making it even
easier to break into the sector. Also, there
are a lot of new brands opening coming
with new innovative ideas, mostly local
shops. The rise of the coffee industry
attracts new entrants and makes it easier
for newcomers to enter the market,
increasing the threat of new entrants.
The threat of substitutes for Cups & Buns
is high because of the availability of
Threats of Substitutes
multiple substitutes such as milk tea
shops
and
other
food
stores
manufacturing their own substitutes for
coffees and bread. In which case the
majority of the alternatives are highly
preferred. In order to keep the firm from
being overtaken by new competitors, the
corporation must keep its product quality
high.