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explain each of the bargaining power of buyers of starbucks company in 200 words.

explain each of the bargaining power of buyers of starbucks company in 200 words.

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Answer #1

The bargaining power of Starbuck's buyers is very high owing to following reasons.

(a) The company faces stiff competition in the markeplace from rivals, and the customers have many options to choose from. The price sensitive customers have cheaper options available in the market, particularly in the countries like India and China.

(b) There is always an option of brewing the coffee in the home, and a visit to a coffee house is more for socialising purpose.

(c) Coffee is not a regular drink of choice for many, in different parts of the world. Tea is preferred over coffee in many parts of Europe, Asia and the Middle East, owing to its prceived health benefits over coffee.

(d) In hotter and subtropical climate, people often prefer cooler drinks over coffee, such as fresh and preserved juices, carbonated drinks, other alcoholic and non alcoholic beverages. The only option with Sarbucks here, is the cold coffee.

(e) Globlly, Starbucks products are within the reach of a very small fraction of consumers owing to its premium status.

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