Dunkin Donuts faces a very competitive environment within the coffee and snack industry. A major threat comes from other major competitors, including Starbucks Corporation, Peet's Coffee, and newcomers like McDonald's McCafe, with the most significant threat coming from Starbucks. While Dunkin Donuts held 16.1% of the market in April 2011, Starbucks held 32.6% of the market sharexxiii. Although larger competitors and chains pose a greater threat in terms of total loss of profits, local coffee shops are certainly worth mentioning. A small cafe may be able to attract customers in a given area through cheap local advertising and word of mouth. These smaller stores may also be able to control quality more effectively and have more flexibility to provide a product suitable for local markets. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an Original Essay Within the coffee and snacks industry, competitors will be able to compete on product quality, service quality, and pricing. Product quality may vary depending on the type of beans purchased, the best method of preparing coffee and food products, and the presentation of these products. Although a company like Starbucks can more easily standardize its processes and product quality, due to Dunkin Donuts' choice of 21 franchises, it may face a more difficult time presenting a standardized, quality product. This may be due to less adequate training practices or the execution of training procedures in stores. Another method by which Starbucks or other competitors can compete on quality is through service and atmosphere. While Dunkin Donuts historically offers a quick shopping experience, Starbucks offers an atmosphere in which customers are expected to feel comfortable enough to stay and relax or work. This could lead to a more pleasant customer experience as well as repeat purchases each time a customer visits, but could also contribute to higher costs and fall outside the scope of Dunkin Donuts' strategy. The higher costs of creating quality service and atmosphere could allow Dunkin Donuts to compete with its competitors on price. If the target market is not looking for a sit-down experience, but rather an on-the-go experience at a great price, this strategy may be more effective. Other companies have succeeded in similar ways: Although Wal-Mart offers lower quality products and fewer services than some retail competitors, they have succeeded by offering a cheaper alternative to some shoppers. Keep in mind: This is just a sample.Get a custom paper now from our expert writers.Get a custom essayThe costs for a customer to switch from Dunkin Donuts to a rival, or to a rival of Dunkin, are relatively weak. A coffee or snack is a one-time, short-lived purchase, and it requires little to change brands. A few factors can increase switching costs. Starbucks has a very specific ordering system and set of options, and the customer will have to relearn the size and ingredient titles. This can also contribute to brand loyalty – if a customer feels attached to “their drink” with a list of add-ons. Additionally, rewards programs, like the Starbucks Gold Card, can pose an opportunity cost when switching to another coffee brand.xxiv The company operates a program.