MKT600 Weekly Critique Notes
A Crack in the Mug: Can Starbucks Mend It?
- The last six months of 2007 saw a decline in share price by 50% and a decrease in customer
visits in North America
- January 2008 – closed 100 stores
- July 2008 – number rose to 600 stores
- Late 2007 there was a $0.09 cent a cup increase
- 2008 change of CEO
- Should the company have continued to expand or was it time to reassess its goals and strategies?
o Were people still getting value for money?
o Reduction in discretionary spending?
o Competition was cheaper?
o Only after North America? Just over 70% of outlets
- In January 2008, the company had more than 15,700 outlets in 37 countries and was aiming at