In no way shape or form am i a financial advisor! Lets start off saying that. But what i've been saying for the past 18 months or so, now is starting to show through. Starbucks (SBUX) the premier "coffee" chain in america and presumably around the world. Is beginning a downward spiral that myself said would be coming for the company. If you walk into any of the 15,000 shops world wide you will find anything from a new coffee machine, to t-shirts, compact disk, dvd's and even during the holidays, christmas ornaments. Oh! and if you squint your eyes hard enough you may find that 190° cup of coffee that you were looking for.
I've said it to a few people i know many of times "starbucks needs to stick to what they know, and not get into all these other businesses." Starbucks the Seattle based company went public on July 3rd 1992 when they felt that their coffee product was on a steady incline. Now more than 15 years later the company is witnessing a low point many people thought would never come. But starbucks has struggled to maintain its caffeine driven consumer over the past few years.
on May 5 2006, starbucks stock reached a peak of 39.63$ from that incline the company has fallen to drastic lows. From what i believe starbucks expanded in too many directions too fast. In the fiscal year 2007 the company opened 1,342 retail stores alone. Indulging deeper into markets other than their brand name coffee products. As reported in numerous newspapers nation wide starbucks is closing roughly 600 stores and laying off more than 120,000 employees. And is struggling to regain that stronghold it once had in the industry. With recent products like the lemonade, vivanno's (a protein blended shake) and sorbettos (a fruit flavored smoothy with pinkberry flavors.) Starbucks is attempting to draw its consumers back into its illustrious stores. But the attempt is failing many consumers are finding alternative ways for there caffeine fix. Some say there just not willing to pay the high prices for there caffeine blended drinks.
Again im not a financial advisor, but i don't see this company in the same situation 20 years from now. No i don't see Starbucks as being the dominate giant in the coffee industry. I foresee them merely as a brand name. I predict Starbucks products will still be avaiable, but under a titan like Mcdonalds or Walmart. I do not see starbucks around as predominately as they are now, if at all.
Is America losing the source of its morning cup of eye opener? Or does this company have something up its sleeve its been hiding for about two years now?
1 comments:
Thank you oh wise one. I think I passed up that crystal ball you are reading out of when I saw it on EBAY. It was selling for $9.95 right? I think the guy that was selling them was also selling rubber chickens?? Yes, I'm sure of it. ;-)
I STRONLY disagree that Starbucks will be absorbed under another global corporation. Just their brand name is worth $10bn dollars. They aren't going to just sell off that kind of brand equity - even if it has been dealt a blow as the result of their saturation of the market and many brand extentions (i.e. - Music label, Coffee Maker Manufacturer, etc.). You are dead wrong my friend.
BTW, I think EBAY offers a 30 day return policy on products purchased on their site. You might want to mail back that crystal ball for a refund while you still have a chance to get your money back.
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