07.09.08
Coffee Surprise- July 2008 Newsletter
Starbucks surprised many coffee drinkers this month when they announced they were closing 600 stores. But to those who have been paying attention their business difficulties have been evident for the past couple of years-explosive growth, real estate purchases, increased competition and an economic downturn are some of the contributing factors that have led to their financial woes. Hopefully Starbucks current business decisions will help them continue their success.
So what can distributors learn from the Starbucks story?
–Starbucks lost focus on what they do best- create an experience that is more than just the coffee. Maintaining focus on your key initiatives helps keep you grounded when times are good and when times are bad.
–Explosive growth can come at a price. While we all like explosive growth, the price paid can be overwhelming if we have not planned for it and are not prepared from an operations and service perspective. Strategic growth is easier to manage and usually more profitable.
–Increased competition has continually eroded the Starbucks brand. While they have been the leader, they have not defended their brand as aggressively as their competitors have promoted the Starbucks alternative. Always remember to defend and promote your brand. The uniqueness of what your company offers to customers should continually be promoted at every level within the company.
Now go and enjoy a fresh cup of java from…
Brian
