I drink coffee, especially when I'm driving in distance. However, I could not stand its hangover effect. So, I'm a tea person for the most time. I come cross this blog regarding McDonald's strategy to jump in the competition (see McDonald's Takes On A Weakened Starbucks).
It's interesting to see how competition brought more business. First, 'Howard Schultz popularized lattes and cappuccinos in the U.S. after borrowing the idea from espresso bars he visited in Italy.' He 'wanted the cafes to serve as a "third place" where people gather between home and work and feel some of the romance of the European cafe.' Apparently, the push generated a strong demand in 1990s, and brought others to the competition. As such, Dunkin' Donuts became the 'biggest competition,' at least in Northeast.
People fear that such expansion may wipe out small mom and pop stores. Yet, this is not the case. The reason is that, in lots of cases, the push could also bring in anti-Starbucks businesses as an alternative and ride on Starbucks' publicity. One business owner even 'bought a Chinese restaurant right next to one of their stores [Starbucks] and converted it, and by God, it was doing $1 million a year right away.' (see Why Starbucks actually helps mom and pop coffeehouses)
So, we can see that supply did lead to a strong demand, and it serves as a multiplier to bring in new businesses and propel them in the right direction.
Technorati Tags: competition, demand, supply, multiplier, coffee, latte, Starbucks, Dunkin' Donuts, McDonald
It's interesting to see how competition brought more business. First, 'Howard Schultz popularized lattes and cappuccinos in the U.S. after borrowing the idea from espresso bars he visited in Italy.' He 'wanted the cafes to serve as a "third place" where people gather between home and work and feel some of the romance of the European cafe.' Apparently, the push generated a strong demand in 1990s, and brought others to the competition. As such, Dunkin' Donuts became the 'biggest competition,' at least in Northeast.
People fear that such expansion may wipe out small mom and pop stores. Yet, this is not the case. The reason is that, in lots of cases, the push could also bring in anti-Starbucks businesses as an alternative and ride on Starbucks' publicity. One business owner even 'bought a Chinese restaurant right next to one of their stores [Starbucks] and converted it, and by God, it was doing $1 million a year right away.' (see Why Starbucks actually helps mom and pop coffeehouses)
So, we can see that supply did lead to a strong demand, and it serves as a multiplier to bring in new businesses and propel them in the right direction.
Technorati Tags: competition, demand, supply, multiplier, coffee, latte, Starbucks, Dunkin' Donuts, McDonald
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