SERVICE ORGANIZATION

Service Organization

Starbucks Coffee Company

Structure of the market in which Starbucks operates

Physical characteristics of a market constitute its market structure. The key identifiers of any market structure are the barriers to entry and number of firms that exist in the market. There are 6 different types of market structures: Perfect Competition, Monopolistic Competition, Oligopolu, Oligopsony, Monopoly, and Monopsony (Sen 2011, p.n.d.).

Starbucks falls within the category of “Monopolistic Competition” (Investorwords n.d., p.n.d.). This is so because barriers to entry are minimized, while there are many firms in the market, hence making the market highly competitive. Firms are selling differentiated products in ...