Business level strategy refers to the selection of particular business process that the company can compete and the coordination and development of those selected business. For McDonald’s, the company has already chosen the nature of its business activities (McDonalds, 2013). As such, its business level strategy entails the identification of its segment of customers and the manner in which these clients add value to the company. The strategy for this company is to produce goods and services more efficiently to ensure that it maintains and expands its circle of clientele.
Dunkin Donuts also has a rather simple and straightforward business level strategy. The company is aware of the important role played by public relations and the management is emphatic on the need to maintain good interpersonal relations with the customers. Through such consistent communication, feedback can be acquired and used in the improvement of the processes of business. As such, Dunkin Donuts ensures that the products offered to the consumers are in line with their expectations and demands.
Costa Coffee’s business level strategy is differentiation. Product differentiation refers to the use of unique attributes in the process of production such that the customers find it easy to differentiate one’s product from that manufactured by others. In this light, Costa Coffee has been able to outdo the stiff competition created by the other players in the market and offer quality coffee to all its customers. The strategy has enabled the company to maintain a large share of the market and command significant profits.
The following is a comparison of the price of coffee in the three companies:
McDonald’s- 1.49 dollar
Dunkin’ Donuts- 2.05 dollars
Costa Coffee- 2.5 dollars
The key success factor for Mc Donald’s Company is the correct application of an aggressive goal in its industry. One of the company’s renown slogans is that uttered by an esteemed supervisory in which he warned that the company will make its competitors run out of business. Another element usable as a measure of the success factor is the consistency of the company. It has grown over the years and created a competitive environment.
Dunkin Donuts also has a key success factor. It has a quality product line in which most of the products produced are appreciated by its group of clientele. starting from the doughnuts as the primary products to the secondary goods such as coffee, the company ensures that all the customers enjoy quality products that will make them eager to have the same experience.
Costa Coffee Business-Level Strategy
Costa Coffee is among one of the fundamental competitors of the Starbucks Company. As such, the strategy, which depicts the performance of the company, is of great significance in understanding the essential aspect of it for the individuals. The Costa Coffee Company within its operations and industry employs differentiation in its business-level strategy. Through the employment of the strategy, the Costa Coffee Company has the ability of diversifying its operations by using the high-quality coffee than its competitors, such as Starbucks (Datamonitor (Firm), 2008). The goal of the company is to provide the premium alternatives to their low-end instant coffee, which has been prevalent throughout the United Kingdom. As such, this aspect is the strategic movement that the company uses to gain competitive advantage over other successful companies, especially Starbucks.
Costa Coffee as a premium brand, advertised the conception that it operates on its roaster, where the top management of the company initiates the employment of master roasters from various regions, including Italy. In addition, the company produced its special Robusta and Arabica coffee blends. The labor costs were among the category of the largest expenses. With the objectives of the delivery of great experience in customer service, the company maintained its attention on the recruitment and training among other components (Datamonitor (Firm), 2008).
Question 3: Competitors’ Goals
The main goals and aims of the McDonald’s are to serve the food for the customers in fun and friendly environments, to be responsible to the company socially, and to provide the good returns to the shareholders of the company. In addition, the company aims to provide its customers with high-standard goals, value for their money, and quick service. The company also seeks to engage the system, the employees, and the customers’ needs through the constant innovation and evolution (Gilbert, Sara, 2011). The company’s strategic goal is to bring convenience to some of the core areas or fields in the United States, including, chicken, beverages, and breakfast.
The goals or the business objectives of the Dunkin’ Donuts are to expand its brand nationally, to transform the Baskin-Robins, and to grow internationally with the focus and discipline. The Company aims to reach its long-term strategic objectives by completing the short-term operational obligations and tasks. As such, through the investigation of the production, the sales, the marketing, and the product development, Dunkin Donuts has the capacity to expand its brand.
The goal of the Costa Coffee is to double the sales. That is, after having a successful financial year in 2012, the company sought to explore the UK market as an avenue to increase the sales (Datamonitor (Firm), 2008).
Datamonitor (Firm). (2008). Costa Coffee case study: Retaining brand leadership in coffee shops. London: Datamonitor.
Gilbert, Sara. (2011). Mcdonalds. Creative Paperbacks Inc.
McDonalds top five critical success factors. (n.d.). Retrieved from http://www.ukessays.com/essays/business/mcdonalds-top-five-critical-success-factors.php