Starbucks would be considered part of a perfect competition market because they are creating competition for small coffee chains all across North America. They would realign their business practices to create regulations to create a positive buzz around the company which will only help them in the long run. It is difficult to manage a large number of stores and have them all be profitable which may be why they closed a number of stores. But it may also be to help some of the smaller business become better competition to them and help them become a better and stronger business in the long run.
Both of these things that they are doing will hurt them short term. They are large enough of a company though that it really should not matter at all as they can make up for it without any worry at all. It will benefit them a lot in the long run and that is what they are most concerned about. They are most concerned about being a profitable and long prospering company and long term success will definitely help them achieve that.
They have been able to charge such high prices because people demand their coffee and are willing to still purchase it at the high prices that Starbucks charges. Their is still an extremely high demand for their coffee and I think that the high prices actually help. If they lowered their prices I think it would hurt them as their revenue would decrease as well as the demand for their coffee may also see a surprising decrease.
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