2. Labor Disputes & Involvement in Lawsuit.-Because of Starbucks’ payment and policies
toward its part-time and full-time employees do not compatible with working hours and duties.-
470 Frustrated store managers sued Starbucks in 2001 for allegedly refusing to pay legally
3. Starbucks only spends $30 million annually on advertising, or roughly 1% of its revenues
relying on word-of -mouth
4. Predatory real estate
strategy—paying more than market-rate rents to keep competitors out
of a location.-Not only it is claimed as an unfair attempt to drive out small, independent
competitors who could not afford to pay inflated prices for premium real estate, this also leads
to monopoly and then leaves customers annoyed with fewer choices.
5. Stores Expansion Globally-Stores expansion in other countries too rapid to concern the real
preferences and habits of local consumers and competitors.
Starbucks is making less money on each overseas store because most of them are operated with
local partners. 2.. 3. Its pricing policy is not suitable for generation X. 4. 5.
4. Improve profitability in Japan
Reduce Price / Increase Benefits.-targeting mid-income levels were frequent buyers and grew
Offering new beverages according to the Asian or Japanese culture and provide wider range of
different tea or soft drinks–Tea drinks will increase popularity because their perceived value of
Offering special, Japanese food in Starbucks stores, Japanese candies, cakes or sweets or even
snacks– Starbucks’ may become more Japanese!
Following the health conscious trend by reducing caloric and fat content .
Online, phone ordering and drive-through service for busy Japanese.