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Starbucks Alternatives sample essay

Alternatives Alternative #1 is to introduce existing products to new markets.

Since Starbucks is already an established name, we know for a fact that people like drinking Starbucks coffee. However, cultural attitudes can be different around the world. This is an important fact since Starbucks is set on growing internationally. They will also face different reception to Starbucks image and taste. Statistics show that there is still a lot of opportunity to grow in current markets. These current markets represent significantly less risk than setting up overseas. This alternative takes what Starbucks have so far and push it into unknown markets. This is quite risky.

Alternative #2 is to introduce new products to existing markets.

To offer new products in existing stores would be less costly than setting up a new store in a new market. Immediately, new products will have the Starbucks brand image and this will help increase revenue because of these new complimentary items. While Starbucks is still in its growth stage, it is questionable about investing time and money into new products in our current markets when people are still finding out about Starbucks. Loyal customers can also be upset at changes to the new offerings. This option is not very risky and will yield a return that is low.

Alternative #3 is to introduce new products to new markets.

This alternative is more risky than the previous two but is necessary if Starbucks is to expand in the long term. In order to increase revenue and grow as a company, Starbucks will have to reach different consumers. These may include people who drink different kinds of coffee, teas and other hot beverages. Since Starbucks is “selling” the Starbucks experience, they should seek to introduce new products to make that experience fit that specific culture. They can still keep some of their current menu offerings but have it tailored to the consumers. By having a diversified product offering, they will also spread their risk. For instant, if they started selling coffee beans from another country, these new beans could keep the cash flow coming in if another countrys’ beans were not acceptable due to weather conditions. However, the image of Starbucks can go both ways. Consumers may already have a preconceived notion of what Starbucks is about and will purchase or not purchase according to that. There is also risk that the current Starbucks image could be seen as unfavourable to current consumers if they think that the newer product items are of a poorer quality.

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