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Risks
1. Over-Expansion: If Starbucks expands too quickly, they risk becoming overstretched and impairing their service quality. This could lead to customer dissatisfaction and damage brand reputation.
2. Brand Dilution: As Starbucks continues to grow and introduce new items, there is a risk that their core products and services will be diluted, and the brand will begin to lack focus.
3. Competition: Starbucks’ growth strategy could bring the company into direct competition with local coffee shops and other chains, resulting in a market where Starbucks has too much presence and therefore is not able to differentiate itself or justify its premium pricing.
4. Competition for Resources: If Starbucks pursues high growth, it could lead to a competition for resources, such as top talent and investment capital, which could also stifle growth and discourage innovative ideas and initiatives.