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Starbucks Pestle Analysis

In: Business and Management

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Integrated Learning Knowledge
Denise McGill

http://prezi.com/2jzdhoz6yhqo/starbucks-industry-analysis/http://www.coursework4you.co.uk/essays-and-dissertations/porter-5-forces.php http://www.scribd.com/doc/27614539/Starbucks-a-Strategic-Report-by-James-Heavey Starbuck employees are called partners http://en.oboulo.com/starbucks-corporation-58582.html http://www.authorstream.com/Presentation/bandineepradhan-1770180-starbuck-pre-bandinee/ http://www.scaa.org/ Starbucks Strategic Report (Industry Analysis)

Porters Five Forces
Porter’s five forces focus on factors outside of the industry which can have an effect on the competition within the company. The force within the company (microenvironment), which in turn effects how the company deals with its competitive market place.
The five forces that (Porter-1980) identifies as having an impact on a company’s behaviour in a competitive market are as followed:

* The threat of new entrants to the market * Bargaining power of suppliers * Bargaining power of buyers (customers) * Threat of substitute products * Competitive rivalry

Starbucks have the real threat of competitive rivalry by competing with some major competitors like McDonalds, Dunkin Donuts, Costa and other small coffee shops and cafes. With competitor’s low prices and the opportunity to break into the speciality coffee market pose a real risk to Starbuck’s.
Substitute products such as tea, juices, water and energy drinks pose a real threat to Starbucks as with pubs and bars because of the threat of being a substitute place for customers to meet outside of the home and work environments.
Customers buying power also poses a threat to Starbucks due to the wide abundance of offers that are available for them.
Suppliers to Starbucks have high bargaining power as the demand for coffee beans are high on a global level. Also as…...

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