What are the risks for Starbucks brand?

Author: Yiran Ji

In recent years, the development of Starbucks has been at extremely fast speed. So some problems were exposed and those problems negatively affect the Starbuck's brand.

 

• The quality of products and service is comparatively poor than before.eg., the bottle was not convenient for customers to hold, the previous milk was substituted for Nestle's milk. However, the price of Starbucks coffee is increased.

 

• Starbucks follow the example of Apple. Starbucks changed their logo into "the siren " without any word or slogan. It means Starbucks would launch other drink products,eg.,tea.instead of just target on coffee.The positioning of Starbucks is "high quality of coffee",if they are going to launch other drink ,they would break down their previous positioning.it makes no sense in the long run and it may bad for the brand.

• Short of value chain. In some countries. The providers were already replaced by local provider. The previous export-purchase model is disappeared.

In 2008, The president of Starbucks decided to close their 600 coffee shop and lay off 1,2000 employees.