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Business Information System Starbuck’s

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Added on  2020-04-21

Business Information System Starbuck’s

   Added on 2020-04-21

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Porter’s 5 model 1Business information systemStarbuck’s porter’s five model analysis
Business Information System Starbuck’s_1
Porter’s 5 model 2ContentsIntroduction......................................................................................................................................3Substitute products and services......................................................................................................3Position of the company in term of customer..................................................................................4Business model of Starbucks...........................................................................................................5Conclusion.......................................................................................................................................7References........................................................................................................................................8
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Porter’s 5 model 3IntroductionStarbucks Corporation is an American Coffee Company. It has well known position in the beverage and coffee industry. In the comparison of its competitors the revenue of the Starbucks has increased by 2% in 2017 (CSI market, 2017). Porter’s five forces model is aided an 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 same industry produced substitute products and services. The range of substitute product is high for the Starbucks brand coffee. The characteristics of Starbucks are availability of substitutes, low switching cost and low cost of substitute. This element of five forces model depicts that substitute have firm potential to negatively influence of Starbucks. There is possible chance that the customer of Starbucks can easily switch from one place to another due to availability of substitute 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 threat source for Starbucks is homemade products which can provide the facility many customers to make at home. Apart from that the efficient customer service, excellent ambience and premium quality in coffee, Starbucks provides premium packaged coffee and coffee makers to its customers. The brand loyalty and efficient quality of products and services are able to extent the threat of substitutes.
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