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With more than 14,000 fast food chains in the U.S alone, Starbucks faces tough competition. Thus, the threat of new products from competitors is possibly high.
Competition between the two companies has already been brewing and to make matters worse, McDonalds now plans to open 14,000 coffee bars similar to Starbucks with "baristas" serving lattes and cappuccinos. Another major worry for Starbucks is the "price war." Starbucks sells its coffee for around $1.50 to $4.00 depending on the size and flavor. McDonalds and Dunkin Donuts sell a cup of coffee starting from $1.00. Therefore, Starbuck's fears it will lose its customers to its competitors...
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