Starbuck Coffee Product

1. What is Startbucks' product?

Startbucks sells a variety of coffee product, such as coffee beans, blends and single-origin coffees, handcrafted espresso, ice cream, and blended beverages.

2. What advantages does McDonald's have in competing with Starbucks for coffee sales?

1. The franchise of McDonald's is larger than Starbucks. When McDonald's begins to sell high quality coffee in its stores, it will try to take market share from Starbucks

2. The products of McDonald's are more varied than Starbucks. The products of McDonald's include hamburgers, French fries, and a variety of drinks. More products can attract more customers.

3. The target market is different between McDonald's and Starbucks. The target of Starbucks just wants to supply a place for people to relax. However, the target of McDonald's is supplying customers with every meal. So the market of McDonald's is bigger than Starbucks.

3. What changes in society helped Starbucks become successful?

Since the mid-1990s, more and more customers have wanted to drink their coffee out-of-home. The change of customer behaviors caused Starbucks market to increase steadily.

4. What strategic factors account for Starbucks' long-term success in building brand equity?

Starbucks received agreements for its products with a number of other companies. Now many companies, such as Pepsi-Cola, Kraft Foods and Dreyer's Grand Ice Cream, use the Starbucks' products.

5. What are the advantages if the Starbucks Card to the company and to customers?

When the customers use the Starbucks Card, they think it is very convenient. They can prepay their purchases of Starbucks products, by put their money into the card. On the other hand, because customers can prepay their purchases, they do not get any discount from Starbucks. It can increase the Starbucks' income.

6. What recommendations do you have to improve Starbucks competitive position?

Starbucks should supply a more varied environment. Some customers go to Starbucks to relax. So variety can attract more customers. In different places, the stores of Starbucks need to have different styles. For example, in a business district,