Coffee and Starbucks Background

Fourthly, the threats of substitute product is very likely to be high as coffee, juices, soft drinks, tea and many more can be easily substituted. In the mean time, consumers can also choose to go to pubs and bars and spend their time or to meet up to substituted struck. Lastly, the threat of competitor rivalry of struck in high as there are many presence of strong impetigo with deep pockets like Mcdonald’s, coffee beans and dunking donuts. Not forgetting hundreds of small local coffee shops and houses fighting for the same market share. 7.
Recommendation Based on the SOOT, PEST and Potter five forces that is conducted, I have made several recommendations. We can use concentric diversification to further expend the firms by making or obtaining new product and services which are related to the business. This is good for the business because it will bring down the cost and the main competencies can be move the the new business. Struck can also choose to use acquisition or restructuring diversification process to purchase other firms Or even merge with other firms to gain market share or even expend into a new market.
Struck might also think of using differentiation strategy which involves conveying products and services that customers recognize as unique or special and must be better than what other people are doing in the same market. 8. Conclusion This is the completion of the environment analysis on struck in Singapore that have conducted. All in all with the SOOT analysis proves that struck s a very attractive company and struck is a very experienced company.

PEST analysis that is conducted also proves that Singapore is a very safe and reliable country to invest in. Although Potters five forces shows that the industry is not very adjective but it also have some big limitations in today’s market environment. Market environment sometimes changes as fast as we can anticipate but Potters five forces and other analysis can only serves as a guide to management to enable them to think as a beginning for farther analysis. And vie made three suggestions base on all the analysis conducted.

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