Starbucks Gossip

Is Starbucks the ideal definition of a perfectly competitive market? It could certainly be said so! Unless you've been living under a rock all your life, you know that Starbucks is the most famous coffee peddler in all the world. Although they dominate the market, there are still numerous other coffee shops on this planet, all selling coffe. It is easy for prospective coffee shop owners to enter and exit the market.  Everything appears to line up with the definition of perfect competition, except for that whole "seller having NO control over the price" thing. A long standing gripe with Starbucks are their expensive prices for their designer brews. It would appear that Starbucks is very much in control of what it charges per cup! Despite this, the company is still ruled by the competitive market, and that means it must bow and accomodate booms and busts with the rest of them. They've shut down numerous shops that are built to close to older ones. The world has been in recession after all, and that's one thing Starbucks can't avoid! In production terms, they have hit diminishing returns, and it's best to scale back operations and output of their "plants" in order to maintain that tidy profit they've come to expect! Criticized for turning the quaint coffee shop experience into nothing more than a stark visit in a roboticly mass produced and sterile "store", Starbucks is working hard to bring back the charm that the original Seattle store so richly possessed. But is it too late?
Is coffee too expensive at Starbucks? That all depends. Are designer jeans that flatter the body too expensive? What about a Prada hand bag that last a lifetime? When compared to the cheaper alternatives, of course these "luxury items" are expensive. Consider Starbucks the Cadillac of the coffee industry. For some people, the extra money is worth it. For them, the coffee tastes better, the atmosphere is cosier than a mud ridden floored Tim Hortons' and they like being served their cup of Joe by friendly barristas who enjoy what they do. It all depends on the experience you are seeking
. Starbucks is no exception to any large corporation that, no matter how successful they have become, cannot escape the inevitable booms and busts of the economy.