A Challenge to Starbucks Essay

A Challenge to Starbucks Essay

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Many people start his or her day with a cup of coffee. Coffee franchisees are growing around the world with coffee being one of the most popular drinks. A Colombia franchisee Juan Valdez is a growing franchisee in the United States specializing in coffee.
The article “Colombia’s Juan Valdez Cafes Poised to Challenge Starbucks” (Wyss, 2013) does a compare and contrast of Juan Valdez and Starbucks. It compares Starbucks expanding stores in Colombia and Juan Valdez expanding the United States. It uses the country of Chile to compare how each store sells side by side.
In the article, it describes the benefits of Juan Valdez expanding in the United States. On the other hand, it shows how Starbucks will struggle in Colombia competing against an all Colombia company. Juan Valdez founding and operations are explain in the article. It also details how Starbucks uses new brands to keep customers going to the store. The article is a great example of international commerce in the world.
The article is a great example of the subjects cover in Business 101. It covers economics, franchises, marketing, and brand names. The article explains how coffee shops operate in a Global economy.
Juan Valdez franchising into the United States from three stores to sixty new stores will increases the brand name of Juan Valdez. The owners of Juan Valdez are Colombian farms named National Federation of Colombian Coffee Growers. Coffee sold at Juan Valdez goes to the farmers as royalties. Juan Valdez is a national brand for Colombia making it a great seller in Colombia. When the brand moves to the United States, it will sell an all Colombia beans.
The brand of Colombian Coffee is import to Juan Valdez for providing the best tasting coffee. T...


... middle of paper ...


...ore. The weakness for Starbucks is only Colombian coffee will distort the brand name. The opportunities are that Colombia has a growing middle class. The threats are being an American company the store can be targeted for terrorism, or Colombians will prefer a Colombian company to an American one. The weakness and threats outweigh the strengths and opportunities.
The article Colombia’s Juan Valdez café poised to challenge Starbucks is a great example of the material cover in Business 101. It covers a range of topics from brand name to franchising. Juan Valdez is a growing company that in a few years will have a store in most towns.



Works Cited

Wyss, J. (2013, November 9). Colombia's Juan Valdez Cafes Poised to Challenge Starbucks. Miami Harld, p. 1. Retrieved from http://www.macon.com/2013/11/08/2762925/colombias-juan-valdez-cafes-poised.html#storylink=cpy

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