Competitor Analysis: Starbucks

3.4 Competitor Analysis

Since 1971, when the coffee industry had started to grow and the range of products and rivalry from other businesses were small; Starbucks was only then competing with brands that hadn’t really made much money over a few years, and Starbucks was topping them all with the amount of profit and revenue the business was gaining however due to the industry growing as days go on, Starbucks now has significant competitors that have stores all over the world that is affecting their exposure and how they sell their products indefinitely. One of these significant competitors is McDonald's, with over 36,899 restaurants, employing 375,000 people and serving 68 million customers a day.(En.wikipedia.org, 2016) They once originated

Starbucks is known as premium brand so the way they put prices on products isn’t usually the same as other stores in the sense that they wouldn’t place an amount on an item just to make profit for how much they purchased it for, but instead would put the price on the item to include the quality of the product, staff wellbeing and efficiency while serving customers and this then makes up the price of the product altogether.(Marketing91.com, 2016)

Product: The best quality products are the only items that Starbucks sell. They continue to bring in customers due to the way they make their products as well as new ideas that they’re continually bringing in such as fresh seasonal products that keep the customers coming in for more. Howard ensured that he knows every little thing on the way they make their coffee to ensure fair trade is their number one policy.

Place: There are around 27,000 stores around the globe with 13,930 shops just in the USA due to the location where it was founded. They ensure they’re an audience for all different customers and invest a huge amount of money to new stores that may be slightly different to usual such as pop up restaurants and cafes at festivals.(Marketing91.com,