interoffice memorandum to: | Rich Peyser | from: | Aditya Rege | subject: | Competitor Analysis | date: | February 4, 2015 | cc: | Michael mandel | | |
Mr. Peyser, you have requested me to perform this competitor analysis in order to help you analyze how our competitors are doing in comparison to our Green Mountain Coffee Brand. While Starbucks and J.M Smucker and Company are corporations as well, they lack the power that we do in the market, however, because they are two other major players, I decided they would be the subjects of comparison. So far, I have gathered much information and done many hours of research. Here are the results of what I have found.
There are many competitors in the industry ranging from small independent business to large corporatized companies that have an established presence in the market. The major threat comes from Starbucks because the idea of getting cheap store-made coffee is becoming more appealing in today’s corporate society. If one had a large amount of disposable income and had to choose between roasting coffee in a Keurig or getting store bought coffee at a Starbucks every morning, they would hands down pick option number two at least 80 percent of the time. Going to Starbucks involves less effort and still gives you the same product. J.M Smucker is another corporation that produces a sizable amount of coffee, which they then sell to supermarkets and grocery stores. If we can beat both of these companies in those markets, it could potentially add much more revenue.
The closest resemblance to our own product comes from J.M Smucker, because their scale of operation and sales force is much like ours. They have a better rate of production and are very well-known because of their jellies and other jam products. While we earn more revenue from our products and do have a great production team, I feel that we