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Social ScienceA 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. HBR's 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. Harvard recommends that Starbucks should have stayed private, growing at a controlled pace to maintain its status as a premium brand.Answer these questions (explain in seven to ten lines):Why do you think Starbuck’s was providing “an experience that is no longer special”?Do you agree that in order “to keep up, Starbucks would either have to cut prices, or cut down on stores to restore its brand exclusivity”?Provide three recommendations the coffee company should instrument to enhance success.
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. HBR's 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. Harvard recommends that Starbucks should have stayed private, growing at a controlled pace to maintain its status as a premium brand.
Answer these questions (explain in seven to ten lines):
- Why do you think Starbuck’s was providing “an experience that is no longer special”?
- Do you agree that in order “to keep up, Starbucks would either have to cut prices, or cut down on stores to restore its brand exclusivity”?
- Provide three recommendations the coffee company should instrument to enhance success.
Expert Answer
Ans1: Yes, from an individual point of view, Starbucks offering new services which have no longer required. Instead of offering services like Wi-Fi and music for sale, they had been unable to attract the same crowd again. Once the bad experience has experienced by the customers, then all the efforts become useless to regain the same market. The same experienced have been experiencing by Starbucks nowadays and deciding to close their 600 stores in the USA. Yes, this is also true that they are offering new things in their stores to attracts customers, but there all the efforts are going in a cold box.
Ans 2: One of the best ways to increase the business is to decrease the price and keep the quality high. According to the Harvard Business Review, Starbucks, a multinational beverage company, reviewing and commanding the price of the products which have no longer required. It is very important for Starbucks to cut costs in the pr...
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