Comparison Of Two Food Company: Dunkin Donuts And Starbucks

Starbucks Corporation is a multinational coffeehouse and roastery reserves chain based in America, with its headquarters in Seattle, Washington. The company was set up in 1971 by Gordon Bowker, Jerry Baldwin and Zev Siegi. Starbucks is one of the companies which offers the fresh roasted whole-bean coffee. It had changed the traditional experience of drinking coffee outside our homes through an innovative approach.

Dunkin Donuts, which is also known as Dunkin', is an American multinational company which offers coffee and donuts. The company was formed in Massachusetts, in 1950 by William Rosenberg. The parent company of Dunkin Donuts is Inspire Brands. The products of Dunkin include baked goods, hot and cold beverages etc sandwiches, soft drink etc.

Analysis

Starbucks

Starbucks is famous for its high quality coffee and other products. Quality consideration is an important feature of the company in which it doesn't make any compromise. The company has also built up a brand image through its excellent services. Moreover, it has a wide supply chain all over the world which enables it to have the advantage of reduced cost and improved efficiency. It also aims to diversify its operations and widen the area of operation through continuous improvement.

There do exist certain limitations as mentioned above. But eventhough these limitations exist, all these are covered up by the strengths in a tactical manner. Eventhough the cost is high, people view it as a matter of prestige to consume Starbucks products. Also, the product are imitable. But even when the products are imitated, there exists a difference between the quality of the products. The quality of Starbucks products stay or remain in the first position. Another major drawback is the setting up of standards which reduces the scope for flexibility. But this is indeed a strength for the company as the other competitors aren't able to reach up to the standards of Starbucks.

Dunkin donuts

The company has world wide operations which improves it's standard and image. The brand image of the company is high and people view it as a status to consume dunkin' products. The supply chain of Dunkin is wide which helps to reduce cost and obtain cheap labour.

There are various drawbacks, which are overcome by the strengths. Eventhough the cost is high, people continue to consume the products due to the brand image. The product variety is less, but the ones produced catch high sales because of the quality. The company doesn't concentrate much outside the US, but the operations inside the country are quite profitable.

Starbucks creates value to the customers through differentiation. Varieties of products are offered to the customers which ensure their satisfaction and loyalty. They can also order customized drinks according to their preferences. The company offer quality products and services to the customers.

Dunkin secures the loyalty of the customers and provide value to them through the provision of quality products at reasonable prices. Compared to Starbucks, Dunkin products are more affordable. The operations are simple to handle.

Starbucks effectively recognises Corporate Social Responsibility. Variety of measures are undertaken by the company to ensure the well-being of the society and it's customers.

To get along with the community within which it operates, Starbucks opens community stores with the partnership of local non profit and organisations. Here variety of customer friendly services, including offers are given for the customers. It has developed an initiative Viz, Starbucks Foundation, to provide training opportunities to the youth of the community. It also ensures that the products are manufactured or produced in an ethical manner. The company also ensures that it's operations have little impact on their environment. As a measure to preserve the environment, LEED Certified Stores are set up which is concerned with the recycling, conservation of water and energy, development of ways to address climatic change etc.

Dunkin Donuts also efficiently recognises CSR to ensure the welfare of environment and the society as a whole. It has undertaken sustainable building. It involved the launch of DD Green Achievement which ensures energy-efficient restaurants. It reduces wastage of natural resources and helps to utilise them in an optimum manner. It also keeps a check on the usage of plastics through the production and usage of paper cups of high quality. The company donates significant amount for the betterment of the community and the neighborhood. It works with the local non governmental agencies or organisations to ensure the welfare of the society.