Starbucks Coffee Company Transformation And Renewal Case Solution

Despite this, Schultz could ascertain that the long-run growth prospects are limited owing to the internal and external business dynamics. Some issues included the tightening competition in the coffee and beverage market. A number of retail beverage brands have ventured into the industry. Some were catering to the lower-end market, and others to the high-end ones. Furthermore, Starbucks’ image as a brand that developed an emotional connection with the consumers was also eroding. Although the brand did well in terms of making its various business processes effective and cost-effective, the brand was losing its connection with its main target audience. This improved the profitability of the retail chain in the shorter run, but compromised the long-run revenue stream of the company. This was a major obstacle for the company.