Starbucks Vs Dunkin Donuts

Key Problems • Saturation of the coffee retail chain market in US • Negative image among customers due to suppliers treatment , shop ambience not according to the culture of the country. • Failure of innovative product lines • Various labor disputes (Linn). Alternative Strategies • Gaining sustainable growth - A focused approach based on differentiation • Improving the perception of the customers - Best-cost provider strategy • Offering a wide range of products - Broad differentiation strategy Chosen Strategy • The strategies should be formulated under the Broad Differentiation Strategy – Offer differentiated products and services than the competitors – Set the shop ambience based on the culture of the international locations – Prove to be the best employer and partner (Horton).

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