Running head: ABSTRACT 1
Research Abstract
Institution Affiliation
Date
ABSTRACT 2
Abstract
Starbucks Corporation is a multinational business organization that was founded in the United
States. The organization owns and operates a chain of coffeehouses around the world. Starbucks
also owns and operates roaster reserves. The organization's products include coffee beverages,
tea, sandwiches, smoothies, and baked goods, among others. The organization has been dealing
with some severe problems. One problem that Starbucks currently faces is increased competition.
Many businesses that sell coffee, tea, and other foods and beverages similar to Starbucks are
encroaching on Starbucks’ market share. The decline in the company’s market share because of
competition has led to Starbucks closing some of its stores. In 2018, the organization announced
that it would close 150 stores in 2019. Some of the competitors that are partly responsible for the
decline in Starbucks’ market share are Dunkin Donuts, Nestle, McDonald’s, and Costa Coffee,
among many others. The second problem that Starbucks is facing in the United States market is
market saturation. The company has outlets all over the country. Its competitors in the country
also have stores all around the country. The coverage of the entire country by Starbucks and its
competitors means that opportunities for growth in the United States are limited. Limits to
growth opportunities limit the organization’s profitability. Market saturation is also responsible
for Starbucks, closing some of its stores in the country. The third problem that Starbucks faces is
the shift in customers’ perception regarding premium-priced coffee. The organization sells
premium-priced coffee. Customers used to perceive such coffee as superior to low-priced coffee,
and that helped increase sales and profitability. Customers are now increasingly perceiving low-
cost coffee as also good coffee, and that is negatively affecting Starbucks’ sales. The three
problems threaten the organization’s survival and growth.
ABSTRACT 3
References
CBS News. (2018). Starbucks to close 150 stores as sales growth cools. Retrieved from
https://www.cbsnews.com/news/starbucks-to-close-150-stores-as-sales-growth-cools/
Mourdoukoutas, P. (2018). Starbucks' Problems At Home and Abroad. Retrieved from
https://www.forbes.com/sites/panosmourdoukoutas/2018/06/27/starbucks-problems-at-
home-and-abroad/#39faabf964b5
