I have previously written about the success of Starbucks and what small entrepreneurs can learn from the world’s largest coffee chain in the article “Learning from Starbucks: 10 Lessons for Small Businesses.”

Business 2.0 has a brief article on how smaller companies thrive under this giant’s shadow. No, none of these companies come close to Starbucks right now. But they demonstrate that small companies can carve out profitable niches for themselves even if a giant dominates the market — a lesson that small business entrepreneurs need to remember when a giant business moves in on their turf.

Here are the positioning strategies of Starbuck’s competitors:

• Green Mountain Coffee Roasters = Focuses on being green and staying true to its organic roots; also focuses on the office business for the coffee market
• Coffee Bean and Tea Leaf = Has a reputation for innovation with its extensive collection of coffees and teas; also pushes its niche in Starbucks-free markets overseas such as Israel
• Costa Coffee (London) = Goes international with a twist. In India, it outsmarted Starbucks by partnering with local businessmen and adapting its taste to the Indian palate. Also has strong presence in the Middle East and launching in China next year with 300 stores
• Peet’s Coffee and Tea = Goes upscale and concentrates on the taste of its coffee for its market of java connoisseurs
• Caribou Coffee = Sells a lifestyle characterized by adventure

Read the Business 2.0 article “Grinding Out Success Next to Starbucks”