For coffee lovers around the world, there is no company more synonymous with the drink than Starbucks. Originally a small coffee house in Seattle, it now spans the globe with over 17,000 stores in 49 countries.
On the other side of the fence are those who seem to think that Starbucks represents globalisation in the same way McDonalds does. They would argue that the marketing strategy adopted by the company which included, buying out competitors leases, intentionally operating at a loss and having stores bunched together in a small geographic area, is anti-competitive.
Looking at this argument in a totally objective eye it has to be said that the strategies used by Starbucks were at times anti-competitive. However, when it comes down to business they do deserve some credit because it forced competitors to look at how they operate and where they could improve.
But this is no Hollywood story. Starbucks grew so fast and became so big that the “Starbucks experience” became diluted and the company paid the price for growing at a pace that was over aggressive and unsustainable. It is easy to forget that at one time the Starbucks image was very upmarket and exclusive. But, with over ten thousand stores in the United States that exclusiveness dissolved.
In 2008 Starbucks announced the closure of 600 stores in the US and in Australia 61 of 84 were closed, and then in 2009 they announced the closure of an additional 300 stores. In addition to the Starbucks corporate image suffering, several thousand employees lost jobs.
In the last two years Starbucks has had to undertake significant changes to improve their service and go back to what made them successful in the first place, the “Starbucks experience”. However the experienced offered by Starbucks is no secret and competitors have learned a huge amount from the company.
Ultimately those of who are real coffee lovers, with pottery coffee sets or giant pottery mugs at home are winners because all these coffeehouse companies are stuck in a savage Darwinian battle, which is now at a fascinating stage due to the growing popularity of McDonalds coffee and your custom is gold dust to them, so choose wisely.