Part 2 – Market Structure and Company Data Market structures can vary as much as
peoples preferences for coffee over several different economies. Amounts of cream,
almond milk, sugars, organic sugar substitutes, or even adding tea or now butter to make
the perfect cup are the like the nuances and influences in finding success in certain
markets. For the purpose of analysis of structure it would be ideal to have a simplified
black coffee approach. It would be more accurately described though, that market
structures overlap and blend from country to country and from industry to industry. A
portion of Starbucks’ economic success could be definitely attributed to the fact that it is
based and primarily operates in the United States and it’s free market hybrid economy.
Within different economies there are pre-established market models that are determined by
number of firms, standardized production and ability and overcoming barriers to enter the
market (Bruce, 2013) . Based on the industry that Starbucks operates in it is best classified
as operating predominately under the monopolistic competition model. Starbucks
competes with other firms across many industries as their product can be substituted if
there is a shift or change in income of the demographic of adults 25-40. Within the specific
hot drinks industry there are approximately 21 competitors (Hoovers, McLellan). Three of
the twenty one; Dunkin Donuts, McDonald’s and Nestle are considered major competitors.
One would imagine that to the average American that coffee is just the name and the
mechanism to get the desired results of delivering a payload
