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The Starbucks Effect and the Saturation Point
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Posted by ian 1 year 111 days ago (www.marketmatador.com).  Views: 88
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One of the best examples of over saturation can be found in a strip mall in Colorado. Exactly three Starbucks locations, marked by the red X’s can be found. Each store is no more than 750 ft away from one another, and two of the stores are only 200 ft away from each other. By flooding the market with spots for coffee, Starbucks has been wasting growth potential, and opting for current market optimization. Unfortunately, the optimization is becoming wasteful and hurting the brand image.

In a number of press releases, Howard Schultz, Chairman and Founder of Starbucks, has mentioned the loss of original roots associated with becoming a chain store. The focus on coffee shop ambiance was the root to Starbucks’ success, but somewhere along the line the company lost the entrepreneurial spirit.

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