10/08/2006 07:41:00 PM (3)
The Seattle-based company recently announced that it plans to expand its store base from a current 12,000 units to 40,000 globally. The brand expects at least half of those stores will be in the US. The company obviously believes that the brand can sustain this level of expansion and that stores don't cannibalize each other.

In the past, the company has demonstrated how stores in close proximity to each other, manage to fuel growth.

However, this level of expansion will seriously challenge the brand on a number of fronts. Ubiquity has its advantages, but your brand can also pay a heavy price if you are not careful. Major issues for Starbucks will be to ensure that it continues to keep the experience fresh, the recent NYC Salon initiative was a great example, in addition, they are going to need to move more aggressively into food, something they appear to be doing already.

The challenge with food, is to ensure that like the rest of the brand, quality is priority no1, which could be hard.
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Comments
Starbucks' Hatred
Maybe I missed the boat on this but why has Starbucks' received the ignominious reputation that McDonalds seem to have? Their whole world domination thing is surely just a sign of good marketing and great business planning? Why does everyone hate them so much? Do they employ impoverished people in developing countries? Do explain.
Posted by Govind on 10/09/2006 06:33 AM
Starbucks' world domination is not yet complete
Starbucks suffers from the "tall poppy" problem, it's become large and successfull that people want to bring them down a peg. There ubiquity has become something of a cultural joke, Austin Powers movie, etc. Are any of these attacks related to anything beyond size? Not really, there have been a few attacks based on free trade issues, which the company has responded to, but not really more than that.
Posted by Edward Cotton on 10/09/2006 09:40 AM
Starbucks
I don't like Starbuck becuase they serve many different versions of quite poor coffee. They jazz it up and offer lots of 'sophisticated' varieties but the espresso is disappointing. <br> <br>I resent their success for this reason.
Posted by Ben Mason on 10/09/2006 12:02 PM
It appears you don't have Flash installed.
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