-How 85 degree C developing in Taiwan’s coffee chain market-Business Report MSc Suite (2010/2011)
Contents
Abstract ……...……………………..……..03
Introduction……………………………….04
History of 85degree C …………………….04
Brand ……………………………………....06
- CIS analysis………………….06
- 4P’s analysis………………....07
Questionnaire………………………………09
Current Status……………………………...10
Operation Management……………………10
- Five Forces analysis…………..13
- SWOT………………………...15
Financial ..…………………………………18
Innovation ………………………………....18
Expanding …………………………………19
Starbucks- Strongest competitor………….20
-Disruptive Innovation Theory…20
Future Status ……………………………….22
Conclusion ………………………………….23
Problem and Recommendation……………23
Reference …………………………………...25
Abstract
Although coffee culture originated from Europe and U.S., as the economy and culture of Taiwan is on the rise and the demand for coffee increases constantly, many foreign coffee stores have initiated strategies to penetrate into Taiwan market. Starbucks under agency of Uni-President has entered into the coffee market of Taiwan for 10 years. Previously Starbucks topped the first place in fine-grade coffee but it constantly faces challenges from local brands. In recent year, chain coffee stores have emerged in Taiwan in an astonishing speed of store expansion, particularly the 85 Degrees Coffee to be discussed in this paper. Founded in 2004, 85 Degrees Coffee operates with the philosophy of “Offer 5 Star products with budget pricing.” 85 degree C entered the Taiwan’s chain coffee store market and was the local brand that overtook the international brand, Starbucks ten year stronghold in just 3 years. In less than 7 years, 85C already branches out to 534 stores in Taiwan and abroad, expanding its market to mainland China, U.S. and Australia.
The aim of this paper is to discuss 85 degree C’s rapid ascend in Taiwan’s coffee market. The paper was divided into parts, the first part which is introduction, it will giving a brief introduce about coffee chain’s development in Taiwan; followed by the second part which is history part, the paper will outline the history and background of 85 degree C; then, it moves into the third part, the paper will discuss how 85 degree C make effort to build their brand difficult to compete by its rivalries; next, the paper will do a first hand investigations for 85 degree C’s customers’ feedback and http://www.51lunwen.org/lxsbylw/ satisfaction by giving its customers a questionnaire form then calculate the data and analyze the figures then conclude the result; the next part of the paper is 85 degree C’s current status discussion followed by the operation management of 85 degree C, the paper will introduce the model of 85 degree C’s operation and using Porter’s five forces model to analyze 85 degree C’s status in the Taiwan’s coffee chain market with a complete SWOT analysis for 85 degree C; coming to the next part, which is the financial part, the paper will indicate 85 degree C’s financial status by analysis its statement between 2008 and 2010; then, the paper will discuss innovations taken by 85 degree C to keep their products renew all the time and make keep making strong competitive products; next, the paper will discuss about 85 degree C’s expending and future strategy and analyze its strongest competitor- “Starbucks” in the market by doing STP analysis and four Ps’ marketing strategies of Star bucks to compare these two companies’ differences and similarity and point out their both their advantages and shortages; finally, the paper will come to the conclusion part and will discuss some problems 85 might be faced at present or in the near future then giving some practical recommendation.
Reference
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