Industry & Market Analysis Essay Example | Topics and Well Written Essays - 3000 words

Industry & Market Analysis - Essay Example In response to the continuous economic development in Smithfield, this study will purposely conduct an industry and market analysis for a coffee shop in Smithfield, Dublin. Basically, the proposed coffee shop is totally different from a typical coffee shop. On top of the high quality service, this particular coffee shop will offer added services such as the use different types of IT and communication facilities like printers, fax machine, free access to the internet, and so on. As part of examining the coffee industry in Dublin market, a Porter’s five forces analysis will be conducted in this study. After discussing the coffee shop’s target market, its expected revenue will be estimated based on some assumptions that are related to the company’s target market. After analyzing the market trends, strategic ways on how the company will increase its competitive advantage over its close competitors will be tackled in details. Industry Analysis In general, the Michael Porter’s Five Forces Analysis can be use to analyze the market competition within the coffee shop industry in Smithfield, Dublin. Through the use of the five forces framework, the business owner can easily identify internal and external factors that could directly or indirectly affect the bargaining power of its accredited suppliers and prospective buyers. Aside from discussing the risks for product substitution, the use of this particular industry analysis framework will make the business owner easily track down not only the presence of potential rivalry within the coffee shop industry but also signs of potential threats of new entrants or new businesses that wish to enter the coffee shop industry in this area (Porter 17). Rivalry among Existing Firms There is a high concentration of market competitors within the coffee shop industry in Smithfield, Dublin. Aside from the presence of Starbucks, there are also hundreds and thousands of coffee retailing companies that are curre ntly operational in this area. Because of the presence of numerous competitors that aims to compete for the same group of customers, product differentiation and offering a unique store ambiance is necessary to make coffee shop retailers win the long-term loyalty of their customers. For example, Starbucks managed to take advantage of product differentiation by offering coffee with different flavors such as amaretto, hazelnut, mint, and raspberry into its specialty coffee. This gives people some reason to become a loyal customer (Schrage). Other local-based coffee shops have publicly introduced specialty coffee like Mocha Cookie Crumble Frappuccino (Newenham) whereas Kopi Luwak is known for its caramel and cinnamon flavored Arabica coffee that offers smooth flavor with tastes of cacao and a hint of berries (Irishtimes.com). Other than product differentiation, most of the existing coffee retailers are also competing with one another in terms of the quality of its customer service, conv enience, and the ambience or atmosphere offered within the coffee retailing outlet (Newenham). The coffee retailing industry in Smithfield, Dublin is perfectly competitive (Grant 69). On top of the local coffee shops that are being managed by Quails (McKay), the Coffee Kiosk Ballsbridge, the Greenbean Coffee Roasters, Starbucks, Java Republic Coffee Company, and Kopi Luwak are among the newly opened coffee retailing shops in Dublin (Boyd; Newenham; Irishtimes.com). One of the main reasons why the number of coffee shop retailing company is excessively high