Building capacities and spending money on research and development.
By building economies of scale so that it can lower the fixed cost per unit.
New products not only brings new customers to the fold but also give old customer a reason to buy Starbucks Corporation ‘s products.
By innovating new products and services.
How Starbucks Corporation can tackle the Threats of New Entrants Starbucks Corporation has to manage all these challenges and build effective barriers to safeguard its competitive edge. New entrants in Specialty Eateries brings innovation, new ways of doing things and put pressure on Starbucks Corporation through lower pricing strategy, reducing costs, and providing new value propositions to the customers. Starbucks Corporation Porter Five (5) Forces Analysis for Services Industry Threats of New Entrants Managers at Starbucks Corporation can not only use Porter Five Forces to develop a strategic position with in Specialty Eateries industry but also can explore profitable opportunities in whole Services sector. Porter Five Forces focuses on - how Starbucks Corporation can build a sustainable competitive advantage in Specialty Eateries industry. Porter Five Forces is a holistic strategy framework that took strategic decision away from just analyzing the present competition. These five forces analysis today in business world is also known as -Porter Five Forces Analysis. In his revolutionary article - "Five Forces that Shape Strategy", Michael Porter observed five forces that have significant impact on a firm's profitability in its industry. Starbucks Corporation is listed at New York Stock Exchange (NYSE) and have a market cap 87.02B USD. Over the years Starbucks Corporation has redefined the ways of doing business in Services. Starbucks Corporation is one of the leading firms in the Specialty Eateries. Starbucks Corporation managers can use Porter Five Forces to understand how the five competitive forces influence profitability and develop a strategy for enhancing Starbucks Corporation competitive advantage and long term profitability in Specialty Eateries industry. Porter Five Forces Analysis is a strategic management tool to analyze industry and understand underlying levers of profitability in a given industry. Strategic Management Essays, Term Papers & Presentations