PORTER’S FIVE FORCES

CAFÉ COFFEE DAY

WHAT IT ENTAILS

• Helps to understand the forces affecting

corporate strategy and profitability

• Identify competition within the industry

• Analyse an organization’s strengths,

weaknesses and attractiveness
THREAT OF NEW ENTRANTS = LOW

• There are many obstacles to the entry of new competitors into the food sector.
• Few new entrants are successful in this business because it takes time to
understand their customers 'needs.
• New competitors are becoming more and more aware of and accustomed to the
level of customer dedication to their products.
• With a huge international distribution network and a respected reputation, new
competitors are unlikely to attend Cafe Coffee Day.
 THREAT OF RIVALRY = HIGH

• Rivalry in industry high due to presence of numerous presence of some domestic

and international coffee brands
• Despite lockdown in 2020, coffee industry growth remains at 5%
• Starbucks leading in the industry with revenue collection of 22.38 billion USD.
• Aggressive support for Indian brands.
• Limited international presence for CCD (India, Austria, Czech Republic, Malaysia,
Nepal and Egypt)
Threat of Substitutes
● Coffee substitutes are defined as the non-coffee products,
that possess rich coffee-like flavor

● Thesee substitutes are generally available in powder form

that easily dissolve in hot water, and are brewed like coffee

● The declining consumption of coffee due to rising

health concerns is expected to support the growth of
the coffee substitutes market over the coming years.

“New Manufacturers Introducing Appropriate Substitutes to

Meet Consumers’ Healthy Dietary Needs”
 BARGAINING POWER OF BUYERS

• As in todays market, mostly number of buyers are less as compared to the suppliers which give
opportunities to buyers to switch to a new and cheaper suppliers that ultimately drive down the prices.
• This force relates to the power of a consumer and their effect on pricing and quality.
• Switching expense is quite low for the consumers as many competitors sale a variety of comparable
items which give different options.
• Therefore, to attract the consumers CCD also ensures to please its customers by introducing offers and
maintaining quality standards which has made it a successful and faithful business in the eyes of the
customers.