In response to the glut of new, underperforming stores that emerged in 2006, Starbucks will return to its core philosophies regarding location scouting. New store openings will be slow in the next couple of years, but when the economy begins to pick up the company is expected to resume opening new outlets to take advantage of the economic upswing. Overall, the coffee industry is going to be subject to numerous challenges. As market leader, Starbucks will bear the brunt of the competitive challenges. However, they are well-positioned to weather these challenges. After a couple of relatively difficult years, Starbucks can be expected to leverage its various competitive strengths to regain dominance five years in the future.

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