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These restaurants also offer free refill for certain drinks which is one of the threat in switching Starbucks customers to them since these restaurants also provide many of delicious food for customers. Fast foods industry such as Mc Donald, Carl’s Jr. both of the restaurants not only offer free refill for soft dinks but also for their coffee drinks product. Some of the consumers might come to these restaurants because of the cost per cup of coffee. In this case, image is very important for Starbucks, as well as the company’s ability to innovate and differentiate.
Threat of the entry of the new competitors - high
Fortune ranked Starbucks number one in innovation, quality of management, people management and also quality of products or services in the food industry 2007...
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