A New Product Of Starbucks

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There is a lot that a business must do when making the decision to start up a new line of product for their company. Putting a new product on the market is not as simple as just an introduction there must me analysis done to see if the market is acceptable to the product. By conducting a competitive market analysis, companies are able to find strengths, weakness, opportunities and threats to determine if the new product will be profitable. Team B will start off discussing a brief history of Starbucks and the description of the new product line. After that the team will speak about what factors affect the demand, supply, and equilibrium prices. Next the team will discuss the competitiveness and the long-term profitability of the new product line. Then end with what factors affect fixed and variable costs and Team B’s recommendation. History of Starbucks The story of Starbucks starts in 1971, a quiet little area in Seattle’s historic Pike Place Market, opens a coffee shop serving specialty coffee and pastries. In 1983, the concept of the Italian Coffee Bar was introduced by Howard Schultz, President of Starbucks (Starbucks.com, 2015) and changed this little coffee place into a new market. Since then, the Coffee industry has boomed in the United States and both coffee and coffee related items have grown by competitors like Coffee Bean and Dunkin’ Donuts. Starbucks is now in 66 countries and over 21,000 stores and growing. The menu has increased with not just
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