1. Cost of its products is oftentimes double its nearest competitors. In tough economic times, this can greatly influence customer decision making.
2. Response time to competitor promotions and advertising. Starbucks is at the pinnacle, and competitors for their customer base are looking for any way to draw some of that customer pool into buying their product, investing large sums of money on advertising and marketing their new ;products and it’s comparable value to Starbucks.
3. International expansion compared to competitors: McDonald’s and Dunkin’ Donuts have jumped far ahead in the race to capture the international market, investing a great deal in the foreign market and opening up stores in new locations. The two companies have been successful in capturing an early consumer base, and Starbucks is now