Download as pdf or txt
Download as pdf or txt
You are on page 1of 10

Assignment On

“Company Analysis”

Submitted To
Md. Rashedur Rahman
Associate Professor
Department of Organization Strategy and Leadership
Faculty of Business Studies
University of Dhaka

Submitted By
Md. Enzamamul Haque
ID: ZR-097-041
Department of Organization Strategy and Leadership
Faculty of Business Studies
University of Dhaka

Date of Submission :13-12-2023


Table of Contents
Executive Summary ........................................................................................................................ 1

Company Overview ........................................................................................................................ 2

Vision .............................................................................................................................................. 3

Mission............................................................................................................................................ 3

Goals and Objectives ...................................................................................................................... 3

Northend Coffee: ......................................................................................................................... 3

Starbucks: .................................................................................................................................... 3

Target Market.................................................................................................................................. 4

Product Offerings ............................................................................................................................ 4

Pricing Strategy............................................................................................................................... 4

Marketing and Promotional Activities ............................................................................................ 5

Operational Strategies ..................................................................................................................... 5

SWOT Analysis .............................................................................................................................. 5

Strategy Comparison ....................................................................................................................... 7

Conclusion ...................................................................................................................................... 8
Executive Summary

This report analyzes the strategies of two major coffee chains.: Northend Coffee and Starbucks.
Northend Coffee is operating in Bangladesh and Starbucks is operating worldwide with 80
branches over the world. This report compares their vision, mission, goals, and objectives, target
markets, product offerings, pricing strategies, marketing and promotional activities, and
operational strategies. The report concludes by providing a comparative analysis of the two
companies' strengths, weaknesses, opportunities, and threats (SWOT analysis).

1
Company Overview

Northend Coffee is a Bangladeshi coffee chain founded in


1996. The company has over 50 outlets across Bangladesh and
offers a wide range of coffee and tea beverages, as well as
pastries and snacks. Northend Coffee is known for its focus on
using high-quality Arabica beans and its commitment to
providing a comfortable and relaxing coffee experience.

Starbucks is an American multinational coffee chain founded in


1971. The company has over 34,000 outlets in over 80 countries
worldwide. Starbucks entered the Bangladeshi market in 2019 and
currently has 10 outlets in Dhaka and Chittagong. Starbucks is
known for its premium coffee beverages, its iconic branding, and its
focus on creating a vibrant and social coffee experience.

2
Strategy Analysis & Comparison: Bangladeshi Northend
Coffee vs. Starbucks

Vision

● Northend Coffee: To be the leading coffee roaster and retailer in Bangladesh,


providing customers with the freshest, highest quality coffee experience.
● Starbucks: To inspire and nurture the human spirit – one person, one cup, and one
neighborhood at a time.

Mission

● Northend Coffee: To provide customers with a superior coffee experience by


sourcing and roasting the highest quality coffee beans, and by brewing them with
care and precision.
● Starbucks: To create a culture and community around coffee, offering customers a
unique and rewarding experience.

Goals and Objectives

Northend Coffee:

● To expand its presence in Bangladesh by opening new cafes and reaching new
customers.
● To educate consumers about the importance of high-quality coffee and the benefits
of freshly roasted beans.
● To support the local coffee industry by purchasing beans from Bangladeshi farmers.

Starbucks:

● To maintain its position as the world's leading coffee retailer.


● To expand into new markets and reach new customers.
● To continue to innovate and develop new products and services.

3
Target Market

Northend Coffee targets a broad range of customers, including students, young professionals,
and families. The company's focus on affordability makes it appealing to a wider segment of the
Bangladeshi population.

Starbucks targets upscale and aspirational customers. The company's premium pricing and
international brand reputation position it as a symbol of status and luxury.

Product Offerings

Northend Coffee offers a variety of coffee and tea beverages, including espresso-based drinks,
brewed coffee, and iced coffee. The company also offers a range of pastries and snacks.

Starbucks offers a similar range of coffee and tea beverages but also offers a wider selection of
food items, including sandwiches, salads, and wraps. Starbucks is also known for its seasonal
and limited-time menu offerings.

Pricing Strategy

Northend Coffee uses a value-based pricing strategy, offering its products at a lower price than
Starbucks. This allows Northend Coffee to appeal to a wider range of customers and compete
more effectively in the Bangladeshi market.

Starbucks uses a premium-based pricing strategy, charging a higher price for its products than
Northend Coffee. This allows Starbucks to maintain its brand image and target a more affluent
customer base.

4
Marketing and Promotional Activities

Northend Coffee uses a variety of marketing and promotional activities to reach its target
market. These activities include advertising, social media marketing, public relations, and
promotional events.

Starbucks uses a similar range of marketing and promotional activities, but also relies heavily
on its international brand reputation and global marketing campaigns.

Operational Strategies

Northend Coffee has a franchise-based business model, with a majority of its outlets owned and
operated by franchisees. This allows the company to expand its reach quickly and efficiently.

Starbucks uses a combination of company-owned and franchised outlets. This allows the
company to maintain more control over its brand image and quality standards, while also
benefiting from the local expertise of franchisees.

SWOT Analysis

Northend Coffee
Strengths:
• Strong brand recognition in Bangladesh
• Value-based pricing strategy
• Wide range of product offerings
• Franchise-based business model
Weaknesses:
• Limited international presence

5
• Less emphasis on brand image and customer experience
• Lower profit margins compared to Starbucks
Opportunities:
• Growing coffee market in Bangladesh
• Increasing demand for premium coffee experiences
• Expanding product offerings
• Entering new markets
Threats:
• Competition from international coffee chains
• Increasing costs of coffee beans
• Changing consumer preferences

Starbucks
Strengths:
• Strong global brand recognition
• Premium-based pricing strategy
• Wide range of product offerings
• Emphasis on brand image and customer experience
• High profit margins
Weaknesses:
• Limited presence in Bangladesh
• Higher prices than Northend Coffee
• Less focus on local customer preferences
Opportunities:
• Growing coffee market in Bangladesh
• Increasing demand for premium coffee experiences
• Expanding product offerings
• Increasing brand awareness
Threats:
• Competition from local coffee chains

6
• Increasing costs of coffee beans
• Changing consumer preferences

Strategy Comparison

Northend Coffee and Starbucks have different strategies for achieving their goals.
Northend Coffee is focused on providing a superior coffee experience by sourcing and
roasting the highest quality beans. Starbucks is focused on creating a culture and
community around coffee, offering customers a unique and rewarding experience.

Northend Coffee is a relatively new company, but it has quickly gained a reputation for its
high-quality coffee and its commitment to sustainability. Starbucks is a global brand with
over 30,000 stores in over 80 countries. It is the world's largest coffee retailer and has a
strong brand presence.

Northend Coffee and Starbucks both have ambitious goals for the future. Northend Coffee
is focused on expanding its presence in Bangladesh and educating consumers about the
importance of high-quality coffee. Starbucks is focused on maintaining its position as the
world's leading coffee retailer and expanding into new markets.

7
Conclusion

Northend Coffee and Starbucks are two of the most popular coffee chains in the world.
They have different strategies for achieving their goals, but they are both committed to
providing customers with a high-quality coffee experience. While Northend Coffee focuses
on affordability and value, Starbucks focuses on premium quality and brand image. Both
companies are well-positioned to benefit from the growing coffee market in Bangladesh.
However, they will need to adapt their strategies to meet the evolving needs and
preferences of Bangladeshi consumers.

Which company has the better strategy is a matter of opinion. Some people may prefer
Northend Coffee's focus on high-quality coffee, while others may prefer Starbucks' focus
on creating a culture and community around coffee. Ultimately, the best way to decide
which company has the better strategy is to try their coffee for yourself.

You might also like