1.

High prices – For many middle tiers and working consumers, Starbucks’ offerings
are more costly than McDonald’s and other coffee outlets. Its high prices reduce
affordability for the consumers.
2. Imitability of products – Starbucks doesn’t own the most unique products in the
market. This makes the imitability of products quite easy for other companies. Other
coffee shops and food chains like McDonalds McCafe and Dunkin Donuts offer
almost the same products.
3. Generalized standards for most products – Some of its product offerings are not
aligned with the cultural standards of other markets. For example, in some areas, its
crafted beverages do not associate with the consumer preferences.
4. European Tax avoidance – Due to its tax avoidance in the UK, it faced several
controversies and criticisms. Reuters’ investigation found out that it didn’t pay tax on
its £1.3 billion of sales in three years prior to 2012.
5. Procurement Practices – Many social and environmental activists criticized the
company for their unethical procurement practices. They claimed that it procures
coffee beans from impoverished third world farmers. It has also been accused of
violating “Fair Coffee Trade” principles.
6. Recall of Products – Over the years Starbucks has recalled a lot of in-demand
products. This can negatively affect the brand image of the company and lead to
the loss of customer base.

7. Expensive Products: While Starbucks does differentiate their products with being highly quality
couple with

the whole ‘Starbucks Experience’, in times of economic sluggishness, consumers to have so

switching costs to competitor’s products with lower prices and forgo paying a premium. These
premium prices could also pose some weakness for it to succeed in developing countries.

8. Self-Cannibalization through overcrowding: By aggressive expansion and high saturation

due to overcrowding in the market leads to self-cannibalization and diminishes long term growth
targets of Starbucks. This is happening especially in the United States where Starbucks operates
8078 stores

9. Overdependence in the United States market: In line with self-cannibalization of the US

market with 8078 stores, Starbucks generates a huge percentage of their total revenue from the
US and this makes it very sensitive to prospects of the US economy and growth.

10. Negative large corporation image: Like any large corporation, Starbucks does come under
increased scrutiny and have to invest in corporate social responsibility activates and maintain
tight control over labor practices.

11. American/European coffee culture clash with that of other countries: Starbucks coffee
culture may not widely accepted in some countries as part of their international expansion
strategy.