To narrow down the market structure, I decided to focus on the company's coffee shop market structure. Starbuck's biggest competitors in the coffee shop market are Cairbou Coffee, The Coffee Bean, and Peet's Coffee and Tea. All these companies offer a seductive atmosphere and high-quality drinks. Monopolistic competition is a market structure in which firms have many competitors, low entry and exit costs, and offer different types of products to their customers. In detail, I believe that Starbucks falls within a market structure of monopolistic competition. According to Prezi.com, Starbucks is also able to take advantage of sales economies by purchasing dairy and paper products in bulk due to the enormity of the size of their operations (Kim, A 2014). This allows them to have the advantage of lower input costs and to price their products based on consumer elasticity. The company continues to take pride in the fact that its customers not only buy a cup of coffee, but also the atmosphere that comes with it.