Starbucks Analysis

583 Words3 Pages
It is difficult for many to trade the taste and quality of Starbucks for cheaper alternatives such as the break room coffee. Yes, maybe the break room coffee is more convenient and free, but is it really that inconvenient to go grab a Starbucks? Also, is it really that expensive considering how wonderful the taste is? This is a common thought process of a frequent Starbucks coffee drinker. It is these thoughts that make power of rivalry moderate.
The power of the buyer is moderate to high. If a consumer is looking for a morning coffee or an afternoon pick-me-up they have many options to satisfy this demand. There is nothing, besides quality and variety, that forces frequent coffee drinkers to choose Starbucks. Starbucks is generally more expensive than the alternative, which gives the buyer the power to decide whether to spend the extra money and shop at Starbucks.
Although buyer power is high, Starbucks holds the largest share of coffee sales worldwide. Starbucks also holds many coffee related partnerships and subsidiaries making it the largest purchaser of coffee beans from c...

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