Counter Point

1068 Words5 Pages
Starbucks is one of the most successful business serving coffee and drinks beverage. Starbucks is known for serving hot and cold coffee beverage with a high quality products. Starbucks went public in 1992 with a priced at $17 share and the stock jumped to $21 at the opening bell. By 2007 Starbucks had become one of the most widely recognized and admired global brands. In addition, by 2008 Starbucks has 4500 locations in 43 countries out side the United States. Overall Starbucks known as a good business with a good standing.

Starbucks has many problems starting with the price. Starbucks coffee is more expensive than other competitors like Dunkin’ Donuts and Caribou. In addition, Dunkin’ Donuts offering drinks at prices 20 percent lower
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Keeping the same employee with a full benefits would cost Starbucks $1500 rater than loosing $3000 to train a new hire. Starbucks work to develop their product mix by adding music and book to their customers.

Starbucks knew their prices are expensive and they did a great thing to solve this problem by opening many stores and provide a nice atmosphere to their customers by serving many kinds of snack, cold and hot beverages, sandwiches. “ Customers say one of the reason they come to Starbucks it because they can discover new things, a new coffee from Rwanda, a new food item. The solutions that I considered is Starbucks need to pay attention to their customers feedback for the price of the product and to try to make their price reasonable to the people over the whole world. Since many people like the atmosphere in Starbucks and its more fancy than Dunkin’ Donuts but the price in Starbucks need to recognized and reduce. There are many solutions I recommend to Starbucks. First, the most important is the price. Starbucks need to find a solution with their product price since their price is much more expensive than other competitors like Dunkin Donuts. Most of the people switch to Dunkin Donuts because their product mix are cheaper. Moreover, they should offer free refills to their customers and make sure to give their customers a chance to give their feed back on the product. According to the case
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