Letia Mangum-Patterson,

Current Market Conditions Competitive Analysis: Starbucks

ECO/365

Ed Hartman

February 24, 2014

Abstract

Economics as we know it today was born to a premise of thought. From the idea of how individuals could express their freedoms to sell or produce goods was the founded basis for which the world of economics evolved. “Economics is the science that concerns itself with economies, from how societies produce goods and services, to how they consume them. It has influenced world finance at many important junctions throughout history and is a vital part of our everyday lives.” (Beattie, 2011, para. 1).

Introduction Economics as we know it today was born to a premise of thought. From the idea of how individuals could express their freedoms to sell or produce goods was the founded basis for which the world of economics evolved. “Economics is the science that concerns itself with economies, from how societies produce goods and services, to how they consume them. It has influenced world finance at many important junctions throughout history and is a vital part of our everyday lives.” (Beattie, 2011, para. 1). The United States of America sets the bar for what other countries strive to replicate and the reason why many from around the world seek to live in the land of the free market dream. According to Colander, (2010), “the powerful U.S. economy generates a high standard of living and sense of economic wellbeing (compared to most other countries) for almost all those living in the United States. The reason why is often attributed to its use of markets, and to the wonders of a market economy.” (p. 55).
Company History Starbucks recognized that dream and used the ideology of “free market” to produce their reality. The story of Starbucks dates back to 1971 as a single storefront retailer of coffee in the “Pike’s Peak Place in