Starbucks Questions Essay Example | Topics and Well Written Essays - 500 words

Starbucks Questions - Essay Example STARBUCKS COMPETITIVE SITUATION Starbucks was started by three Seattle friends in 1971 as Starbucks Coffee, Tea and Spices however; later on the name was changed to Starbucks Coffee (Burks, 2009). In the early years of its operations, Starbucks was the market leader in coffee industry however, changes in the industry competitive structure enhanced competition for the company. Today, Starbucks is competing with many coffee brands in the international markets and these small companies like Caribou Coffee Company and Green Mountain Coffee Roasters are stealing market shares of Starbucks by developing an image of unique quality coffee, which is the same business model that Starbucks implemented in early days of its operations (Wikinvest, 2010). Porters’ Five Forces Model Threats of new entry: Threats of new entry in the industry are significantly high because of no barriers to entry. The capital required to start a coffee shop is very low and since the coffee shops are recognised as a third-place between office and home therefore, high demand attracts more entrants in this industry.