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Trading Growth for Values
posted by David Wolf on Oct 14, 2007 | Comments (14) | Permalink | Trackback URL
John Moore and the Starbucks Board of Customers have published the What Starbucks Must Do, a fascinating look under the hood (eh… into the karaf) of this mega-brand, where it has gone and why it’s not all good. Bigger does not a brand make?
John’s book per the Starbucks experience is:
Tribal Knowledge: Business Wisdom Brewed from the Grounds of Starbucks Corporate Culture
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David,
I love any opportunity to bust the “bigger is better” myth. It’s not easy - it so pervades our collective consciousness. It doesn’t work in biology - there are so many examples where there are size limits (like human cells). When it comes to business, it’s so easy to blindly march forward on the growth curve though.
Thanks for this reminder.
I have to say that Starbucks did get it right with the culture: you’re not buying the coffee per se, you’re buying the culture that surrounds it. However, there is also a not so feel-good side of Starbucks.
The entire thing with Starbucks, is that it’s been known - and their intentions were under public access - that Starbucks had a business strategy of saturating the market to a point where there was even “cannibalism” between two Starbucks coffee houses wherein the sales of one Starbucks were eaten by another within a close vicinity. The goal was to dry out the local competition. And it’s even an international plan - the UK coffee houses testify to this. And once the competitors cannot compete, then the unnecessary Starbucks coffee houses would close down. Business students learn about this as a case study in universities. Professors have written many works on this. This is not a conspiracy-theory. So the world should not be too surprised with the massive layoffs today. The recession was a perfect way to cloak their initial agenda. They have been highly criticized for their over-aggressive business tactics - borderline unethical.
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Why is everyone go for Starbuck only for a cup of coffee? Don’t you think that the prize is too expensive? You can still find local coffee cafe which is cheap and still has great flavor.
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Growth is something useless until it meet with a value. To grow, it’s easy, but, to have a value on growth, it’s not easy.
What do you think?