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Cafe Coffee Day

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COMM 401: STRATEGY AND COMPETITON
IDIVIDUAL CASE ANALYSIS: CAFÉ COFFEE DAY

By:

Presented to:

John Molson School of Business

Tuesday July 29, 2014
Problem statement Although India is traditionally known as a tea-drinking nation, Café Coffee Day (CCD) was able to grow the café culture and become the leading coffee chain in India. However, to keep maturing and be relevant, CCD needs to come up with ways to react to the entry of Starbucks in the market, which is the leading coffee chain company in the world. CCD should decide on how strong and forcefully it should react towards Starbuck’s entry, based on whether there is enough space for both brands to be provided in India’s growing market or not. Café Coffee Day should find ways to promote its brand in such a dynamic environment that is affected by all the various competitive brands and changing lifestyle of consumers.
The following paper will analyze the external environment of the coffee market, the internal environment of Café Coffee Day. These will be taken into account when coming up with alternatives and recommendations that will help Café Coffee Day remain growing successfully and have a strong brand image in the market.
External Analysis: The coffee industry will be analyzed firstly at the macro level through the PEST analysis, followed by an in depth look at Porter’s five forces and how they play out in this industry, and finally looking at the key success factors in this industry.
PEST Analysis * Political/Legal: The companies should have a formal agreement in order to be able to sell coffee products through cafes. There are legal agreements and joint ventures made for mutual profit sharing. (Refer to appendix A for the different types of partnership that coffee industries have made.) * Economic: 2.25 billions of coffee are being consumed everyday worldwide. This shows that the

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