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a. Competitors – competitors are other companies who are offering the same product or services or an alternative to the product or services offered by a particular company. Competitors can either be direct or indirect competitors. Direct competitors are those companies who could offer the same product and services while indirect competitors are companies who could offer an alternative product or services.
The political environment is the regulatory atmosphere of which Starbucks operate as a business. The political environment could determine whether Starbucks can open a franchise in a certain country or if its bean can be had without any regulatory issue (issue of quota, banned goods, taxation etch.,).
Economic environment determines the financial capacity of its market. In the case of Starbucks, economic environment made Starbucks reconsider its position in the market when the financial crisis hit in 2008-2010 that companies were compelled to adapt to the new market realities to stay afloat as a business.
Along with the financial crisis is also the changing economic behaviour of Starbucks customers whose purchasing habits changed dramatically along with their choices of coffee products. The “premium coffee” preference suddenly became less a priority and convenience and affordability moved to the forefront. The “prestige orientation” of Starbucks is no longer applicable in the changing behaviour of its customers.
The use of technology is one of the advantage s of Starbucks from its competitors. Despite the crisis, it still managed to keep in touch with its customers with its web platform where customers can discussed about coffee. This became an online community where Starbucks reinforce with its own ingenuity of sending greetings during the customer’s important personal events such as birthdays. In addition, its Gold Card Holder facility through a cellphone helped maintain customer loyalty during the
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