Through various analyses, it is possible to determine what makes one industry more attractive than another industry. Some of the analyses used include: DEPEST, Trends at the Intersection, Funneling approach, and Porter's Five Forces. The DEPEST analysis, in conjunction with the Trends at the Intersection analysis, revealed some important trends that coffee shops should incorporate in order to be successful.These include convenience, green products, and healthy products. This is further developed using the Funneling approach, which narrows a macro environment down to a micro environment. Evaluating the opportunities and threats associated with the coffee and snack shop industry, a company can also determine on which factors they should be focusing. Finally, Porter's Five Forces demonstrates how attractive an industry is based on the bargaining power of suppliers, the bargaining power of buyers, the threat of new entrants, the threat from substitutions, and rivalry among existing competitors. After using these analyses, it has been determined that the U.S Coffee and Snack shop is an appealing market. For example, these analyses demonstrated that the U.S. coffee and snack shop industry, although in a mature stage, is still growing due to globalization. It is an expansive market containing students, the working-class, and on-the-go individuals. For these reasons, as well as many others, it will continue to be a profitable and attractive industry.
In conclusion, Starbucks is leading the market because of their dominating global presence and product differentiation as opposed to Dunkin' Donuts' cost leadership strategy. A consumer's experience at a Starbucks' location is arguably different that any other coffee shop because of their intimate atmosphere, welcoming environment, and genuine service. As determined in the VRIO analysis, their inviting coffee shop atmosphere should prove to be a sustainable competitive advantage. Starbucks' implemented strategy of retail locations and on-site partnerships have received greater response rates, giving them the leading seat within the mature industry. Starbucks' success can also be seen when analyzing their financial statements. In addition, the preceding performance analysis shows that Starbucks is financially out-performing Dunkin' Donuts in almost every aspect. From these comparative analyses, it is apparent that Starbucks has a stronger market position and financial outlook than Dunkin' Donuts.