Starbucks Coffee faces the strong force of competitive rivalry in the five force analysis model, this force concerns the influence of competitors on each other. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay Large number of companies. Low switching cost. Variety of companies. The company faces a large number of competitors of different sizes, specialties and strategies. For example, Starbucks faces competitive strength from McDonald's and Dunkin Donuts, as well as other coffee companies. The strong competitive strength is also due to the low switching cost, which means it is easy for customers to switch from Starbucks to other brands. So based on this component of the Five Forces competition should be among the priority challenges of Starbucks Coffee. Bargaining Power of Starbucks Coffee: Strength is based on the effect that individual and group customers have on business. In the case of Starbucks Coffee, the following external factors contribute to the strong bargaining power of customers: Low switching cost. Small size of individual buyers (weak force) Availability of substitutes (strong force) Bargaining power of buyers constitutes larger forces affecting the business of Starbucks Coffee. The customer can easily switch from Starbucks to other brands as it is affordable. Customers can also stay away from Starbucks if they want because there are many substitutes such as instant drinks and coffee shop drinks, Subway drinks, Costa Coffee and other coffee brands. These important factors overshadow the fact that individual purchases are small relative to Starbucks Coffee's revenue. Starbucks Coffee's top priority should be the customer bargaining power analysis model. The Bargaining Power of Starbucks Coffee Suppliers: At Starbucks Coffee, the following external factors contribute to the weak bargaining strength or power of the suppliers. Wide variety of suppliers (weak strength) Moderate size of individual suppliers (moderate strength) Large overall supply (weak strength) Bargaining power of suppliers does not have much impact on Starbucks. Large aggregate supply diminishes the effect of a single supplier or company. Starbucks also has a policy of diversifying its supply chain. This policy reduces the influence of suppliers on the company even though each supplier is moderate in size compared to Starbucks' supply chain. With the power analysis model, Starbucks Coffee does not need to prioritize supplier concerns or demand. Threat of Substitutes for Starbucks Products; The treatment of substitution force concerns the impact of substitute products or services. At Starbucks, the following external factors contribute to increasing the threat of substitution: Availability of substitutes. switch to substitutes because there are many substitutes such as restaurant drinks, bottled drinks and other grocery store products. As Starbucks has partnered with several companies to expand its brand into new categories. Bottled Frappuccino Drinks Marketed in a joint venture with Brayers, Starbucks ice cream is now the leading brand of coffee ice cream. Additionally, while trying to further scale back its regular coffee shop business, Starbucks is also exploring new store concepts. In Seattle, she tested the Starbucks Café; A European-style family bistro with a menu including everything from crepes to.