Part 7/9:
The Broader Economic Landscape
Starbucks is grappling with hurdles extending beyond internal operations. External pressures have emerged, notably in the form of consumer boycotts linked to geopolitical events, such as the company’s perceived stance on the war in Gaza. Simultaneously, the competitive landscape has intensified with the emergence of low-cost competitors like Luckin Coffee, particularly in the Chinese market. The COVID-19 pandemic altered consumer habits in China, leading to volatile performance for Starbucks in one of its key growth territories.