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The Starbucks Hoodwink

A decade or so ago, Starbucks Corporation began a strategy that involved the over-deployment of stores, with the goal being (of course) the eradication of mom and pop coffee shop competitors. The company intentionally cannibalized sales at their own stores by packing them too closely together, figuring that after they'd decimated the competition in those areas, they'd simply scale back.

The time to scale back has arrived, and instead of the press noting that this was all part of the company's strategy, they're all just kind of assuming that this was some strategical error on the part of Starbucks, and consumers are crying like teething tots because they have to drive two extra blocks. Starbucks kills (often superior) competition, fires a bunch of employees, the press blames it all on high gas prices, and consumers cry themselves to sleep in unadulterated brand fealty.

I don't know if you've seen Wall-E, but I'm not sure it's a fictional portrayal of our future.

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Comments

A year later and I am still a fan. Keep up the good work. You are right, wall-e is foreshadowing. I think most tech blogs like dslreports are full of folks who really believe they're "talking" to each other. Sad. I am telling everyone to go see that movie before it's too late.

Yeah, I saw Wall-e. The social commentary was as subtle as a brick shot out of a cannon. A frighteningly true sounding, well written and portrayed movie. This is why I like Pixar.

Starbucks reminds me of Wallgreens, they pull the same crap.

It was funny...we randomly met a Pixar animator in Mexico whose entire job was to animate the dust around characters as the moved...

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