January 12 - 2011
Early Yesterday Morning, Starbucks (SBUX) went into administration.
Trouble first started around 2007/2008 when Starbucks was forced to close hundreds of shops worldwide and fire/cancel over 1000 corporate roles to cut costs. The troubles were highlighted by hap-hazard in-store marketing ploys, and a counter-intuitive strategy of cutting costs instead of delighting and impressing customers with an updated range of products and services.
In the mid to late 2000s, the world-state that allowed Starbucks to flourish in the 1990s had faded away.The once stylish and modernly designed starbucks stores looked dowdy and old fashioned, stuck in 1996. The 1001 flavours, the faux-italian sounding names, lost their charm too.
Consumers began to realise that coffee was never meant to be enjoyed like a big mac, in homogenous, standerdised and soulless coffee-consumption-facility, and started seeking more authentic, and more unique coffee enjoyment opportunities, walking away from Starbucks and its copycats in droves.
Despite it's inevitable decline, Starbucks will be remembered as one of most successful corporations of the last 20 years, and perhaps stand as a warning against the perils of letting your service/product/brand get boring and out of sync with the desires of your customers.
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