Building the business as an “anti fast food” joint
A downturn in economy and growth in competition have been pushing the coffee house giant to view the virtues of acting as a stream lined competitors, today. The first starbucks, which has stated in 1971 in Seattle, has been going through very high competition. The competitors are McDonald’s and Donuts, who have been trying hard to attract consumers with new, cheap and variety of specialty coffee beverages.
A new thrift among customers
In early 2008, a poll of 1700 consumers showed that more than 30% explained that they were able to save upto 20% few months earlier. This made the company change their strategy. The demand for this brand of this coffee started declining during the downturn of economy. Customers were trying to minimize their habit of over-spending at the times of economic stress. As a result, Starbuscks had to re-adjust their business