"A Starbucks on Every Corner" In 2008, Starbucks announced that they would be closing 600 US stores. Up to that point, S
Posted: Thu May 05, 2022 6:19 am
"A Starbucks on Every Corner"
In 2008, Starbucks announced that they would be closing 600 US
stores. Up to that point, Starbucks stores had added new offerings,
including Wi-Fi and music for sale, but started to lose its warm
"neighborhood store" feeling in favor of a chain store persona.
Harvard Business Review points out that in this situation,
"Starbucks is a mass brand attempting to command a premium price
for an experience that is no longer special." Meaning, to keep up,
Starbucks would either have to cut prices, or cut down on stores to
restore its brand exclusivity. A case study shares three problems
with the growth of Starbucks: alienating early adopters, too broad
of an appeal, and superficial growth through new stores and
products.
Guide Questions:
In 2008, Starbucks announced that they would be closing 600 US
stores. Up to that point, Starbucks stores had added new offerings,
including Wi-Fi and music for sale, but started to lose its warm
"neighborhood store" feeling in favor of a chain store persona.
Harvard Business Review points out that in this situation,
"Starbucks is a mass brand attempting to command a premium price
for an experience that is no longer special." Meaning, to keep up,
Starbucks would either have to cut prices, or cut down on stores to
restore its brand exclusivity. A case study shares three problems
with the growth of Starbucks: alienating early adopters, too broad
of an appeal, and superficial growth through new stores and
products.
Guide Questions: