Question

Who are starbucks Competitors and why are they a threat?

Answer 1

Starbucks main competition comes from Dunkin Donuts and McDonald’s. The competition arises from the fact that all the three franchises are in the top of their respective niches. McDonads serves meals and has been able to successfully combine drinks such as coffee to their menus and has received well by its customers. Similarly, Dunkin is renowned for its offering, its donuts and has been able to combine with coffee to provide better value to its customers. Based on the customer statistics alone, Both Mcdonalds and Dunkin provide suitable competition to Starbucks, combined with its offerings, it has been able to catch up to Starbucsk in terms of its coffee. The fact that starbucks is primarily focused on its coffee as being an experience for its customers sets it apart, however, we also have to consider brand reputation that both the competitors have and based on the offerings by all three, they compete in a similar market and therefore need to compete over the same customer base.