5 Forces for Starbucks

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Written by:

Joshua R


Date added:

April 6, 2013







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2 / 527


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Capital Requirements are low. Property and inventory costs are not substantial enough to deter new entrants. 3. Product Differentiation is medium. Although there are over 3,485 competitors, only a few are large players. They have succeeded by selling an ?experience' as opposed to simply specialty coffee...
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In this way they have differentiated a seemingly identical product. 4. Switching Costs are low. There are no costs to consumers in switching specialty coffee retailers. A small indirect cost may be an emotional attachment to a specific brand. Net Conclusion: Threat of new entrants is high. The relatively low entry barriers of this industry would make it attractive to new entrants...
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