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  • Essay / Difference between Dunkin Donuts and Starbucks - 727

    Starbucks has a 35% industry market share, making it the number one company in this industry, with Dunkin' Donuts coming in second, with a 19% market share. .8%. Together they hold 54.8% of the market share, and the remaining companies with 45.2% of the shares each hold less than 2% (Ibis World: Major Companies). Since these two companies hold most of the shares, while other companies hold smaller shares, the level of concentration of the coffee shop sector is considered "medium" according to the Ibis global report for this industry. This is based on the concentration rate of the top four companies and as it is above 50% it is classified as mentioned above. Although this industry is very competitive, the barriers to entry are rather low since there are no restrictions or limits on who can enter the sector.