Case Study

In 2008, Starbucks announced that they would be closing 600 US stores. Up to that point,Starbucks stores had added new offerings, including wi-fi and music for sale, but started to loseits warm "neighborhood store" feeling in favor of a chain store persona. Harvard Business Review

points out that in this situation, "Starbucks is a mass brand attempting to command a premiumprice for an experience that is no longer special." Meaning, to keep up, Starbucks would either

cut prices, or cut down on stores to restore its brand exclusivity. HBR's case study shares three

problems with the growth of Starbucks: alienating early adopters, too broad of an appeal, andsuperficial growth through new stores and products. Harvard recommends that Starbucks shouldhave stayed private, growing at a controlled pace to maintain its status as a premium brand.

Case Study Question

Do you like to have a branch of such company if given a chance? Why or why not?

How can you establish sales territory with this brand?