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Starbucks story is worth repeating
There has been much written lately about the downfall of Starbucks, the world's largest retailer of coffee. Only a few years ago Starbucks coffee could not do anything wrong but today many think they grew too fast and gotten too big. supersaturation pressure, dismembered extensions has everything done for the fall from grace of a mermaid. Others might argue that the current CEO, Howard Schultz, took his eye off the ball by getting into too many activities extracurricular. On the one hand, Schultz is currently considering the process group of investors that purchased the Seattle Supersonics of billionaire coffee and is now threatening move the team to Oklahoma City.
During the stellar rise of the company, Starbucks has bore the brunt of many jokes, but the growth model to cover the company's ambitious the world with 40,000 stores seems to be on hold now that this has lead to the construction of Starbucks stores fairly close to existing sites, leading to a comedian exclaim: "I saw construction of a new Starbucks inside a Starbucks store." The latest controversy is the use of the company of a topless siren as its logo. However, this logo was in force at the first position of the coffee giant in Pike's Peak Market in downtown Seattle for almost 40 years. Only after Starbucks adopted a "get back to his campaign roots using the logo of the company has received strong opposition from religious groups.
Apart from an economy caused by a slow miserable housing market, a severe credit crunch and massive job losses Starbucks is also battling it out for customers with an opponent nearly three times its size at McDonald's. Was a few years ago when both companies decided in each muscle in another piece, Starbucks enter the business breakfast, and McDonald's to update your supply of coffee to steal consumers away from Starbucks. There does not seem to be a clear winner in wars of coffee, but in less than a year dropped its ambitions Starbucks breakfast high citing a desire to return to their roots. One of the things Schultz stressed during his return as CEO is the retail locations have lost some of its soul and a lot of smell, and he wants to make sure the company focuses on what he feels he is better, and that's make coffee.
Starbucks was always known as a meeting place for business people, students, mothers with children, or just a place to get away to relax a little. This atmosphere was created intentionally by Schultz that terms "third place", or a place you can go home from work. All things that Starbucks corporate can focus on the level of the store, is to make the customer feel welcome again.
Starbucks is one of the initiatives to be undertaken to achieve this goal is the deployment of Wi-Fi in all its locations. Starbucks has a partnership in the past with T-Mobile, but chose to leave the said contract and chose AT & T as its new partner. Starbucks also is scaling back its offerings of music, giving up day-to-day control of its music division to another company, all in the hopes of being able to concentrate on their core business and return a little over 44 million people each week, which is used to pass its doors. Schultz recently commented that this is the worst economic environment the company has operated and where people who used to brag about four U.S. dollars lattes are seriously feeling the pinch of four cents per gallon of gasoline.
But all is not lost, with more than 16,000 Starbucks stores around the world still commands a presence in any market, and throws away a significant cash from its operations. Do not be surprised if Mr. Schultz keeps one eye open to get current weaker at home and abroad as the purchase of profits and revenue may be the only way to achieve the numbers Wall Street has come to expect from the company. There is no reason to believe that Starbucks and Schultz will pull out of the nosedive today to once again reign over the coffee world, a bomb triple non-fat, extra whip, latte to same time.
About the Author
Eric is the head blogger at http://thedripp.blogspot.com and has been a sales and marketing consultant for 20 years. He blogs about
Starbucks
as a way to share ideas and stimulate conversation about the
worlds largest coffee retailer
.
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