Business Information System Starbuck’s

Added on - 21 Apr 2020

  • 9

    pages

  • 1084

    words

  • 2

    views

  • 0

    downloads

Showing pages 1 to 3 of 9 pages
Porter’s 5 model1Business information systemStarbuck’s porter’s five model analysis
Porter’s 5 model2ContentsIntroduction......................................................................................................................................3Substitute products and services......................................................................................................3Position of the company in term of customer..................................................................................4Business model of Starbucks...........................................................................................................5Conclusion.......................................................................................................................................7References........................................................................................................................................8
Porter’s 5 model3IntroductionStarbucks Corporation is an American Coffee Company. It has well known position inthe beverage and coffee industry. In the comparison of its competitors the revenue of theStarbucks has increased by 2% in 2017 (CSI market, 2017). Porter’s five forces model is aidedan organization to evaluate the position of the company. The position of the company in terms ofsubstitute products and services are defined below.Substitute products and servicesThreat of substitute takes place when companies are forced to compete within sameindustry produced substitute products and services. The range of substitute product is high forthe Starbucks brand coffee. The characteristics of Starbucks are availability of substitutes, lowswitching cost and low cost of substitute. This element of five forces model depicts thatsubstitute have firm potential to negatively influence of Starbucks. There is possible chance thatthe customer of Starbucks can easily switch from one place to another due to availability ofsubstitute of coffee in the market ( Magretta, 2011). The shifting cost of substitute is low becausethe customers of Starbucks are not required to spend for the purpose of shifting. Another threatsource for Starbucks is homemade products which can provide the facility many customers tomake at home. Apart from that the efficient customer service, excellent ambience and premiumquality in coffee, Starbucks provides premium packaged coffee and coffee makers to itscustomers. The brand loyalty and efficient quality of products and services are able to extent thethreat of substitutes.
desklib-logo
You’re reading a preview
card-image

To View Complete Document

Become a Desklib Library Member.
Subscribe to our plans

Download This Document