Friday, February 28, 2020
The Problem of Starbucks in Marketing Terms Research Paper
The Problem of Starbucks in Marketing Terms - Research Paper Example Starbucks suffers from being over-reliant on its US market in its generation of sales. The company has also launched new products which were not positively received by the market. It can also be recalled that the company has sometimes failed in its quest to conquer foreign markets. Industry analysts describe that the global arena is fast evolving into a hypercompetitive market. The speciality coffee industry, being still in the growth stage presents a lot of untapped opportunities including new product introduction and technological innovation to enhance customer value. The global market is also unsaturated giving lots of opportunities for expansion for Starbucks and other players. On the downside, there has been increasing competition in the industry due to the proliferation of other participants attracted by the prospects of high profit. Based on the analysis, it is recommended that Starbucks should look into offering new products and serving new markets. The companyÃ¢â¬â¢s succe ss in venturing to new product areas has been heavily documented. However, Starbucks should also minimize the risk of launching products which are not warmly received by the market through the use of intensive and extensive marketing research to unveil the preferences of the customers. As the American market is also becoming saturated with some players, it is necessary that Starbuck s also look into the introduction of its products in other economies. China is a good target because of its size and rapid development.