Chairman Howard Schultz said some of the decisions the company had made, such as using automatic espresso machines, stocking pre-bagged coffee and non-coffee merchandise, and streamlining store design, have taken some of the "romance" and "theater" from the brand and have led to a "watering down of the Starbucks experience."
"While the current state of affairs for the most part is self induced, that has lead to competitors of all kinds, small and large coffee companies, fast food operators, and mom and pops, to position themselves in a way that creates awareness, trial and loyalty of people who previously have been Starbucks customers," Schultz wrote. "This must be eradicated."
Starbucks has grown rapidly in recent years, but analysts have been eyeing the pace of same-store sales, what's more, the competition has heated up recently, with rivals such as McDonald's Corp , Burger King Holdings and Dunkin' Donuts looking to steal some market share.
The company is mainly on selling of coffee products. That if there is a science report show that coffee is harmful for our health, then it will have a very dirrect effect on this stock. It is due that everybody get know of the company is related to coffee only.
The Industry is very sensitive by the other industry. As you know that, other then coffee, the industry itself is persuring you to get a comfort and relax environment when you are enjoying their products. However, if a new trend comes, then, what can they do if they do not change. That mean the company must change time by time. This is very costly.
And how long is the existing trend is? when the other trend comes? Just like "cycber" trend.