Threat tea, which Starbucks sells under its own Teavana®

Threat
of substitute products or services: Moderate. The risk of
consumers substituting away from Starbucks for direct rivals in Iceland such as
Te & Kaffi and Mokka is a genuine concern. As they all honour themselves on
customer service, specialty beverages, they are very hard to differentiate. The
available drinks section is diversed varying from energy drinks to smoothies or
juice. Although, Starbucks sells a huge range of these drinks within its
stores. While the greater part of coffee drinkers do not replace coffee, the
most direct replacement is tea, which Starbucks sells under its own Teavana®
Tea brand. This can be considered as an ideal example of how Starbucks has successfully
done a good job hedging against the risk of replacements with the variety of
drinks it