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    Porter'S Five Forces: Café Coffee Day

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    shubham
    Café Coffee Day faces moderate competition from rivals and substitutes. While it is well established, new entrants face barriers like needing time to understand customer needs. Rivalry is high due to many domestic and international coffee brands competing. Substitute products like powdered coffee are growing in popularity due to perceived health benefits. Buyers have some power to negotiate or switch suppliers due to low switching costs and many comparable options.

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    Porter'S Five Forces: Café Coffee Day

    Uploaded by

    shubham
    47 views6 pages
    Café Coffee Day faces moderate competition from rivals and substitutes. While it is well established, new entrants face barriers like needing time to understand customer needs. Rivalry is high due to many domestic and international coffee brands competing. Substitute products like powdered coffee are growing in popularity due to perceived health benefits. Buyers have some power to negotiate or switch suppliers due to low switching costs and many comparable options.

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    Ccd

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    Café Coffee Day faces moderate competition from rivals and substitutes. While it is well established, new entrants face barriers like needing time to understand customer needs. Rivalry is high due to many domestic and international coffee brands competing. Substitute products like powdered coffee are growing in popularity due to perceived health benefits. Buyers have some power to negotiate or switch suppliers due to low switching costs and many comparable options.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    47 views6 pages

    Porter'S Five Forces: Café Coffee Day

    Uploaded by

    shubham
    Café Coffee Day faces moderate competition from rivals and substitutes. While it is well established, new entrants face barriers like needing time to understand customer needs. Rivalry is high due to many domestic and international coffee brands competing. Substitute products like powdered coffee are growing in popularity due to perceived health benefits. Buyers have some power to negotiate or switch suppliers due to low switching costs and many comparable options.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 6

    PORTER’S FIVE FORCES

    CAFÉ COFFEE DAY


    WHAT IT ENTAILS

    • Helps to understand the forces affecting


    corporate strategy and profitability

    • Identify competition within the industry

    • Analyse an organization’s strengths,


    weaknesses and attractiveness
    THREAT OF NEW ENTRANTS = LOW

    • There are many obstacles to the entry of new competitors into the food sector.
    • Few new entrants are successful in this business because it takes time to
    understand their customers 'needs.
    • New competitors are becoming more and more aware of and accustomed to the
    level of customer dedication to their products.
    • With a huge international distribution network and a respected reputation, new
    competitors are unlikely to attend Cafe Coffee Day.
    THREAT OF RIVALRY = HIGH

    • Rivalry in industry high due to presence of numerous presence of some domestic


    and international coffee brands
    • Despite lockdown in 2020, coffee industry growth remains at 5%
    • Starbucks leading in the industry with revenue collection of 22.38 billion USD.
    • Aggressive support for Indian brands.
    • Limited international presence for CCD (India, Austria, Czech Republic, Malaysia,
    Nepal and Egypt)
    Threat of Substitutes
    ● Coffee substitutes are defined as the non-coffee products,
    that possess rich coffee-like flavor

    ● Thesee substitutes are generally available in powder form


    that easily dissolve in hot water, and are brewed like coffee

    ● The declining consumption of coffee due to rising


    health concerns is expected to support the growth of
    the coffee substitutes market over the coming years.

    “New Manufacturers Introducing Appropriate Substitutes to


    Meet Consumers’ Healthy Dietary Needs”
    BARGAINING POWER OF BUYERS

    • As in todays market, mostly number of buyers are less as compared to the suppliers which give
    opportunities to buyers to switch to a new and cheaper suppliers that ultimately drive down the prices.
    • This force relates to the power of a consumer and their effect on pricing and quality.
    • Switching expense is quite low for the consumers as many competitors sale a variety of comparable
    items which give different options.
    • Therefore, to attract the consumers CCD also ensures to please its customers by introducing offers and
    maintaining quality standards which has made it a successful and faithful business in the eyes of the
    customers.

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