Monday, January 14, 2008

Is Starbucks Losing Steam?


Is Starbucks growing too fast? The company has about 10,500 locations in the U.S.-an increase of more than 3,000 stores in less than two years. Analysts and investors are wondering whether Starbucks is close to market saturation.
Read the WSJ Article "Is Starbucks Losing Steam?" and answer the following questions.
1. How does Starbucks chairman Howard Schultz respond to investor concerns about his company's rapid expansion?
2. Why has Starbucks launched its first-ever TV-advertising campaign? How did it advertise its products in the past?
Define the Following Terms and add links to the definition.
A.) Cannibalization: (as it pertains to business, not eating people)
B.) Same-store sales:
C.) Saturated Market:

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