This article may not be the most recent but I found it very applicable. I just returned yesterday from New York City where the perception of Starbucks is absolutely true. Starbucks is a way of life in NYC. I was staying in a brownstone just off Central Park West and I had my choice of Starbucks stores all within easy walking distance. I would like to say that Starbucks are on average 500 yards apart in that city. You can think to yourself that you would like a coffee and all of a sudden the green logo of Starbucks appears across the street or on an adjacent corner like a mirage in the desert. To say that Starbucks has changed the way people look at coffee is an understatement. The article identifies some very interesting interpretations of how the public has changed based on Starbuck's offerings. As Starbucks begins into additional entertainment avenues you can only assume that they will use the same philosophy and not jump in without testing the waters. The marketing efforts and strategies are focused into their core competency of influencing customers. If that wasn't the case, no one would buy a four dollar coffee with confusing names. Another take on this article that Starbucks has also affected their competitors, not only the lower priced segment like McDonald's and Burger King as the article suggests...but their direct competition of higher priced coffee chains. On the return flight I recognized that the coffee I was drinking was not provided in the airline's paper cup, but in an Alterra cup labeled primarily with their logo. This airline actually incorporated "product placement" to enhance their service smart on the airline's as well as the coffee shop's part. Just a portion that makes the airline "the best care in the air" by providing gourmet coffee instead of quick brew. It was interesting to see so many different aspects of how the coffee industry is changing consumer trends, all within a few days.
Starbucks is rewriting the book on coffee, and they have some lofty future goals. Unfortunately, this strategy will probably "water down" the quality of the coffee. Our text book quotes Herb Kelleher, cofounder of Southwest Airlines, as saying, "Think and act big and we'll get smaller. Think and act small and we'll get bigger."
This Blog will share "snipettes" related to Strategic Management. Contributors to this blog are Engineering Management students from the Milwaukee School of Engineering, Rader School of Business. The views and ideas shared here are those of the students as part of a learning experience. MSOE is not responsible for the content of this blog.
This Blog will share "snipettes" related to Strategic Management. Contributors to this blog are Engineering Management students from the Milwaukee School of Engineering, Rader School of Business. The views and ideas shared here are those of the students as part of a learning experience. MSOE is not responsible for the content of this blog.
2 comments:
This article may not be the most recent but I found it very applicable. I just returned yesterday from New York City where the perception of Starbucks is absolutely true. Starbucks is a way of life in NYC. I was staying in a brownstone just off Central Park West and I had my choice of Starbucks stores all within easy walking distance. I would like to say that Starbucks are on average 500 yards apart in that city. You can think to yourself that you would like a coffee and all of a sudden the green logo of Starbucks appears across the street or on an adjacent corner like a mirage in the desert.
To say that Starbucks has changed the way people look at coffee is an understatement. The article identifies some very interesting interpretations of how the public has changed based on Starbuck's offerings. As Starbucks begins into additional entertainment avenues you can only assume that they will use the same philosophy and not jump in without testing the waters. The marketing efforts and strategies are focused into their core competency of influencing customers. If that wasn't the case, no one would buy a four dollar coffee with confusing names.
Another take on this article that Starbucks has also affected their competitors, not only the lower priced segment like McDonald's and Burger King as the article suggests...but their direct competition of higher priced coffee chains. On the return flight I recognized that the coffee I was drinking was not provided in the airline's paper cup, but in an Alterra cup labeled primarily with their logo. This airline actually incorporated "product placement" to enhance their service smart on the airline's as well as the coffee shop's part. Just a portion that makes the airline "the best care in the air" by providing gourmet coffee instead of quick brew.
It was interesting to see so many different aspects of how the coffee industry is changing consumer trends, all within a few days.
Starbucks is rewriting the book on coffee, and they have some lofty future goals. Unfortunately, this strategy will probably "water down" the quality of the coffee. Our text book quotes Herb Kelleher, cofounder of Southwest Airlines, as saying, "Think and act big and we'll get smaller. Think and act small and we'll get bigger."
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