y positive response in the test markets and posses to be a lucrative option. Starbucks could also look at the vertical integration possibility of producing its own beans. This could prove to be very successful if they can capture a significant amount of the production they could become a price setter in the coffee commodities. Also because small coffee retail outlets are so trendy it is possible for them to set up more of these shops and expand into international markets. Sweden, Denmark, Finland, and Holland consume the most amount of coffee per person. This a large market that Starbucks should seriously consider exploiting. The specialty coffee market is stable and will be around for a long time. This is supported by the stats that once people appreciate a high quality coffee they don’t go back and the lifestyle need these coffee bars fill. It has become a community-gathering place.A company should also be aware of the threats of competing in a particular industry. One such threat is the one of political unrest or currency changes in the counties from which it acquires its beans. If Starbucks can’t get the high quality beans they will not be able to survive. This is another reason for the vertical integration. Another threat is the one that their competitors create. Their competition is not only from other large international coffee houses but also from small local coffee houses in specific areas. Once a retail coffee outlet gets set up and acquires customers it is hard to capture these people. This is why Starbucks must concentrate on defining its brand image. The coffee retail business is also very easy one to enter because of the little capital that is required. However this is changing because of the quality that is becoming expected. AlternativesI will discuss four possible alternatives that should be seriously considered. The first has to deal with McDonald’s. Starbucks has a great opportuni...
