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 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...