1. What does a Porter's Five Forces analysis reveal about the industry in which Dunkin' Donuts and Starbuck's compete? What are the strategic implications for Dunkin' Donuts?

The Porter’s analysis reveals that Dunkin Donuts and Starbuck’s are direct competitors in the store front coffee shops. They are in a board market scope as of right now no other new entrant’s coffee shops are in the business of making their own coffee. They both have unique suppliers because no other company makes products like Starbucks’s and Dunkin Donuts. Both have a customer base for some people will want either Starbuck’s or either Dunkin Donuts coffee. The Substitutes are coffee customers can buy inside of a grocery store like Maxwell house or Folgers. However, there will be no place to enjoy a cup of gourmet coffee inside of the grocery store or service station.

The Strategic implication for Dunkin Donuts will have to begin with a good (SWOT analysis) of the corporation. They should examine their strengths, weaknesses, opportunities, and threats.

2. In what ways is Dunkin' Donuts presently using strategic alliances? How could cooperative strategies further assist with its master plan for growth?

Dunkin Donuts has come up with a brilliant new strategy for growth within the coffee industry. In 2002 the company formed an alliance with Stop & Shop Supermarkets. The agreement allowed Dunkin Donuts to have a full service coffee shop in over 5,000 stores throughout Massachusetts, Connecticut, Rhode Island, New York and New Jersey. This partnership benefitted the Stop & Shop Supermarket’s business because it added value for the customers to drink gourmet coffee during grocery shopping.

The use of cooperative strategies will allow Dunkin Donuts to grow its business by using partnership with other organization that have the same goals. It can give them the ability to cut costs by