The rivalry among existing competitors is relatively high, due to the lack of genuine product differentiation which leads to fiercer competition. Among the strongest competitors of
Starbucks are Gloria Jean’s and Florida
-based co
ffee chain Brother’s Gourmet Many of the local
and regional chains merge in efforts to grow and better position themselves as an alternative to Starbucks. In addition, restaurants are picking up on the growing popularity of speciality coffees
The rivalry among existing competitors is relatively high, due to the lack of genuine product differentiation which leads to fiercer competition. Among the strongest competitors of
Starbucks are Gloria Jean’s and Florida-based coffee chain Brother’s Gourmet Many of the local and regional chains merge in efforts to grow and better position themselves as an alternative to Starbucks. In addition, restaurants are picking up on the growing popularity of speciality coffees
and have installed machines to serve espresso, cappuccino, latte, and other coffee drinks to their customers. Starbucks also faces competition from nationwide coffee manufacturers such as Kraft General Foods (the parent of Maxwell House) and Nestle, which distributed their coffees through supermarkets and speciality coffee companies that sell whole-bean coffees in supermarkets. Because many consumers habitually purchase their coffee supplies at supermarkets, it is easy for them to substitute these products for those of Starbucks.