Monday, March 5, 2007

Starbucks is running out of “Caffeine”



The big chain has reported that by expanding so feverishly and losing the exclusiveness they once had, they have actually accused their brand to lose value and become commercialized. This is allowing competition to really compete, even chains like McDonalds that aren’t in the business of making coffee but posing a threat to the large chain. The spokesperson for Starbucks said regarding expansion, “in retrospect, have (led) to the watering down of the Starbucks experience, and, what some might call the commoditization of our brand,". But the future goals of Starbucks are articulated to keep expanding, “Starbucks to become one of the world's most recognized brands, with 40,000 locations around the globe, or more than triple its current count of about 13,000. But to do that, Starbucks must improve its efficiencies and make other changes that threaten to erode the virtues that made it so successful -- which in turn could jeopardize its ability to charge premium prices.” It will be interesting to see what Starbucks does to improve its image, and push for quality, while still expanding in numbers.

1 comment:

Anonymous said...

An interesting post, good pics...but it's got several grammar, spelling and punctuation problems, to whit:

caused (not "accused") their brand

but which pose (not posing) a threat

A Starbucks spokesperson said the expansion may have to to "the watering down of the Starbucks..."

"Starbucks to become one of the world's..." -- attribution? What's the source of this quote?