Evaluation Of Starbucks Essay

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Starbucks has a product range of more than 30 blends and single origin coffees, handcrafted beverages, bottles and etc. Contrary to the apparently broad product range, beverages represent 77% of retail sales whereas food items and other products account for 15% and 8%, respectively, which means that the company strongly depends on beverages and also that the variety of products developed has not worked as it should have, which may be risky if market and competition conditions change.

There are several cases of distinctive product range failures; For instance in 1999, the introduction of an internet venture to sell kitchen products resulting in a stock fall of 28%, just one day after the announcement. Starbucks
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In addition, unique light fixtures, wireless connection in all Starbucks outlet attract more people. Nice place for chit chat session with friends and family. Therefore, they might come in one big group. People will think of Starbucks when they need their own personal space and homely feeling which could not be found in other café. This implementation gives good impact on Starbucks market development. Besides that, atmosphere also give sum disadvantage which are people will tend to purchase one cup of beverage and spent their day sitting in Starbucks its cause low turnover for Starbucks…show more content…
Since their loyal following isn’t especially price sensitive, Starbucks coffee maintains a fairly elastic demand curve, and a small price increase can have a huge positive impact on their margins without decreasing demand for beverages. In addition, only certain regions are targeted for each price increase, and prices vary across the U.S. depending on the current markets in those areas (the most recent hike affects the Northeast and Sunbelt regions, but Florida and California prices remain the
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