Which growth strategies have been pursued by Starbucks and Dunkin’ Donuts in the past? Which strategies do you believe will be most successful for the two firms in the future? Why? THE COFFEE WARS In the coffee and breakfast market, Starbucks vigorously competes with the likes of Dunkin’ Donuts and, more recently, McDonald’s. Independent coffeehouses and smaller regional chains, seen by many as more hip and less commercial, also continually nip at Starbucks’ heels.

However, the “coffee war” between Starbucks and Dunkin’

Donuts is particularly fierce in the areas in which they compete head to head, even though each chain has its geographic strongholds—Dunkin’ in the East and Starbucks in the West.64 Part of the reason for this infamous battle might be the dominance of these two brands: Together, Starbucks and Dunkin’ Donuts control well over half of the coffee market in the United States.65 Moreover, Starbucks can claim some victories over Dunkin’ Donuts, considering that its net revenues and stock prices have risen continuously since 2009.66 By 2014, its global revenues had reached a recordsetting

$16.4 billion, and in 2015, its stock surged by more than 50 percent for the year.67 Starbucks’ ubiquitous stores—from long-standing locations in U.S. cities and towns to international expansion into a vast range of new nations—are easy to locate and visit. A recent count showed that the chain maintains more than 22,000 stores, spanning 67 countries.68 By making sure its stores, with their familiar siren logo, are easy to find, Starbucks guarantees that most people can readily find a place to get their coffee fix. For the vast majority of buyers, an addictive Salted Caramel Mocha, or just a great cup of black coffee, is convenient to find and very familiar.