Identify three or more competitive strategies that Starbucks may use to maximize its profits in a monopolistic market.
Evaluate the efficacy of these strategies in the monopolistic market structure
Make recommendations related to some strategies that Starbucks might consider to maximize its profits.© BrainMass Inc. brainmass.com September 22, 2018, 6:33 pm ad1c9bdddf - https://brainmass.com/economics/elasticity/starbucks-competitive-strategy-584344
Note: The notes, references, and write up below serve only as guide for you. You may add, revise, and finalize it by adding your ideas.
Pitek (2009) noted that "Starbucks is an international company that operates in a monopolistically competitive market structure".
The [coffee] industry has a monopolistic competition, with Starbucks having the largest markets share and its closest competitors also having a significant market share, creating significant pressure on Starbucks (Geereddy, 2014).
According to Pitek (2009), Starbucks competitive Strategies are:
1.) They have been able to create a standard for their coffee and in which they require their customer base to be exaggerated prices for a cup of their various brews.
2.) With usage of the Starbucks logo, quality, and various trademarks, they differentiate their coffees from their competitors.
3.) Starbucks prides itself on being completely different from any other coffee house and its competitors, which is a reason why Starbucks has become so successful.
Mourdoukoutas (2013) noted that Starbucks' success revolve around these four-fold strategy:
1. Right market segmentation. The company has stayed with the upper-scale of the ...
This is a discussion of Starbucks competitive strategy and how it mattered for the company in a highly competitive market environment.