STRATEGY AND CREATIVITY OF HALO COFFEE LONDON 2455 WORDS

STUDENT NAME: Gilbert Ellis

1.1 Threat of Substitutes: High

Current:

Although coffee market is a growing rapidly, tea continues to be the leader of the hot beverage products. There are other beverages which are used, enjoyed and supported by many people instead of coffee such as: fruit juices, water, soda, energy drinks etc.

Consumers do not have to pay any cost when they switch from coffee to substitutes, which may increase the threat.

Future:

Since coffee and coffee bean are the only products of Halo, their target customer market is really limited. Nowadays people have more choices of their beverage, especially the hot one like tea or milk, which are much healthier than coffee. In the research of the share of hot beverages consumed most often by individuals in the United Kingdom (UK) in 2015, evidence has showed that 44 percent drink tea most often, followed by 21 percent who drink instant coffee (Statista, 2015).

Untitled.png

1.2 Intensity of Competitive Rivalry: High 

Current:

The industry has a monopolistic competition and Nestlé Group is dominating the largest market share especially by their two brands Nespresso and Nescafé. Other competitors also have a remarkable markets share.