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After the execution of the strategy on product development in organic coffee,


competitor¶s market share will certainly fall gradually in a relative percentage. It is
because their weakness is they have yet produce organic coffee. Thus, consumers who
prefer organic coffee will patron our retail store. The major competitor¶ strengths and
weakness would certainly change due to our new strategy on product development in
organic coffee.

In respond to our new strategy, competitors would certainly make some strategic
changes in their business. It is deduced that the competitors will follow the same step as
our strategy which is product development on organic coffee.

Internal strengths like product development on organic coffee will help Starbucks
in their product diversification. Whereby the range of coffee and products that being
produced is increasing. This strategy could also be efficiently implemented with the
newly opened Costa Rican support office where it help to ensure the quality and
Starbucks rewarding environmentally responsible farms via its CAFE practices program.
However, most of the internal strengths are less related with this strategy.

Most of the internal weaknesses are still weakness. This is due to the reason that
by developing organic coffee the price of the product could be still much higher if
compared to the competitors. Therefore, Starbuck¶s all categories of revenues will still
decrease and lead to the downgrading of Starbucks credit rating by Moody¶s Investor
Service. However, the remains weaknesses are unrelated with this strategy. All of the
external opportunities are still opportunities. It is because when Starbuck producing
organic coffee, all of the categories of consumers demand towards their coffee will be
increasing due to the healthy contains in the organic coffee which also due to the growth
in popularity of specialty coffee.

All of the external threats are not external threats. For the reason, that all of the
threats are not pertinent to the strategy of product development on organic coffee.

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