Comments on: Case Studies 101 – the most important case questions for future consultants

By: Boh

Boh — Tue, 18 May 2010 03:15:35 +0000

I would think that there would be at least two issues in relation to the Starbucks questions:

1) It is not a decided factor that sales are being canabalised because at the same time, you are getting additional customers (eg from other non-starbuck coffee stores, or ones who would not have for one reason or other gone to another store). Essentially, a new store would be giving additonal returns if the value of [net profit from new store] – [profit canabalised from another store] is positive.

2) Having more stores, and generally being convenient, is a form of marketing for the brand of starbucks, so why not make a profit and market your brand at the same time.

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Mon, 19 Apr 2010 21:33:37 +0000

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By: David Hama

David Hama — Sat, 10 Apr 2010 21:32:50 +0000

The question about Starbucks is interesting.
I would think that for example Starbucks tries to suggest that people do not want to cross the street for something so essential as a morning coffee. Therefore this would explain why they might build two stores just opposite each other (which is quite frequent from my own experience).
….in the end of the day it all depends on your logic, communication and great synthesis….

By: cgdm

cgdm — Sun, 14 Mar 2010 20:55:32 +0000

you don’t sit and spend time in starbucks.
you wait in the line, get your order and leave..
generally starbucks’ locate in high populated places, so there is possibly be a long waiting line.. so they locate many shops so people doesn’t have to wait long..

this is my opinion..

By: Weijiang

Weijiang — Fri, 15 Jan 2010 16:43:40 +0000

Hi kevin,

could I ask what was the answer they were looking for to the starbucks question?