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This fails to benefit Starbucks because they are eliminating potential customers due to their high price. By turning away potential customers Starbucks is giving business to their competition. Coffee is an inexpensive industry to gain entry into, therefore this leaves an easy entry for increased amounts of competitors. Now not only is the competition opening up shops in locations around already established Starbucks shops, the competition is now selling the product for less money. Another weakness that Starbucks imposes upon their self is that they are at risk of self cannibalization. This is due to individual shops becoming closer together as more shops open...
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