Coffee Bean as compared, do not have that much franchise stores like Starbucks because they are not that profitable. 2) The Starbucks organization has strong ethical values and an ethical mission statement as follows, ‘Starbucks is committed to a role of environmental leadership in all facets of our business. ‘ They wish to change the lifestyle of the peoples and they have succeeded in doing so, once people wish to drink coffee the first brand that comes into the mind is “Starbucks” 3) Compared to Starbucks, Coffee Bean is involved in more community responsibilities and through this activity they have attracted more customers. ) Starbucks and Coffee Bean both face the same weaknesses because no matter how they innovate the new flavor, people’s taste might change in time, they can’t make much different changes on coffee, which is the weakness of this business. 5) Coffee Bean faces the problem of “franchise policy”, they do not construct it perfectly and we can’t get the Coffee Bean shop anywhere just like Starbucks. 6) Starbucks is very good at taking advantage of opportunities. In 2004 the company created a CD-burning service in their Santa Monica (California USA) cafe with Hewlett Packard, where customers create their own music CD.
Moreover, new products and services that can be retailed in their cafes, such as Fair Trade products. 7) Starbucks has the opportunity to expand its global operations. New markets for coffee such as India and the Pacific Rim nations are beginning to emerge. 8) Starbucks gained the opportunity because they have co-branding with other manufacturers of food and drinks, and brand franchising to manufacturers of other goods and services. Both have potential while Coffee Bean does not have it. 9) However, Coffee Bean still has a market potential because their taste is slightly different from Starbucks.
Their prices are also cheaper than Starbucks, which makes their product more affordable to middle or lower class people. 10) Actually both companies face similar threats. Who knows if the market for coffee will grow and stay in favour with customers, or whether another type of beverage or leisure activity will replace coffee in the future? People will start to consider their health problems, some people are sensitive with caffeine so will these people change to drinking other beverages instead of coffee?