Moreover, McDonald’s and Denny’s offer high-quality coffee menus. To counter competition and to stay ahead of competitive tactics, Starbucks needs to be ahead of competitors. The company, by introducing innovative products for the new segment, could offer products that are healthy for the teens. This objective would be in line with their corporate vision of being a family destination. Moreover, one of their guiding principles in their mission statement is Develop enthusiastically satisfied customers all of the time (Kembell, Hawks, Kembel, Perry and Olsen 2002).The buying power of the teens has been growing and they represent 5% of the total population (Koenigsberg and Koen 1994). According to a poll, 13- to 21-year olds spent more than $120 million in 2007 (Lockyer 2009).The market for new products for the children exists and Starbucks has a very high chance of success in the market. The teens’ spending has increased and they look for a place to hang out. Products can be offered by Starbucks which would be healthier for them than the existing products they consume now. However, chances of failure do exist mainly because of the threat of accusation of luring the teens towards coffee. Overall, Starbucks could enter this segment and introduce innovative products as the strengths and opportunities far outweigh the threats. However, Starbucks should ensure that their brand image and reputation is not affected as they pursue a strategy for growth and enhanced market share. They must not compromise on quality and adhere to their values and ideals.Starbucks should not enter into fresh new ventures to introduce new products. Instead, they should offer these as product extensions from their existing stores. However, on an experimental basis, they could have extension counters at retails stores frequented by teens, for selling exclusive products for teens. While teens go out with parents, they also seek privacy and hence joint ventures with some retailers might be productive.Starbucks has introduced the coffee culture among the adults and the teens have shown an inclination towards the same. As of now the products that teens consume a high dose of caffeine, so Starbucks should position itself as a company offering healthy drinks along with a place to hang out and socialize.