Building block assignment Example | Topics and Well Written Essays - 250 words

Building block - Assignment Example A weakness of Starbucks Cafà © is that its product is a luxury item that performs poorly during bad economic times. Another weakness of Starbucks Cafà © is high raw material costs. Starbuck Cafà © uses only fair trade coffee at its stores which is more than twice as expensive as regular coffee. Starbucks Cafà © is a company that has expanded its operations oversees. The company has further opportunities for expansion into foreign markets. The firm must expand internationally because the U.S market has become saturated. Another opportunity for Starbucks Cafà © is the potential to grow its sales in the retail marketplace by selling unprepared pounds of Starbucks coffee at supermarkets and other establishments. A threat that Starbucks Cafà © must be aware of is substitute products. In terms of competition in the coffee marketplace a major threat to the company is the continued expansion of McCafà ©. McDonald’s has over 34,000 establishments worldwide and its McCafà © operation sells quality coffee at lower prices than Starbucks