Comments on: Starbucks – an example of vertical integration http://www.techiteasy.org/2007/07/28/starbucks-an-example-of-vertical-integration/ A Technology and Business Weblog provided to You by a Global Group of Friends. Wed, 29 Dec 2010 19:44:30 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: full dizi http://www.techiteasy.org/2007/07/28/starbucks-an-example-of-vertical-integration/#comment-5237 full dizi Mon, 30 Nov 2009 23:56:19 +0000 http://techiteasy.org/2007/07/28/starbucks-an-example-of-vertical-integration/#comment-5237 As the last sentence suggests, that is perhaps where the difference lies. The core-value of McDonalds is not the same as that of Starbucks. The first started with offering hamburgers for $ 0.15, now around $1; the latter offered premium beans and later coffee for $3.50. This is again a superficial observation, but higher prices translate into a higher budget for quality. Just like Apple maintains high margins for it’s hardware, vs. other PC-makers, it can offer a higher quality of design and customer service than most of its competitors. Similarly, Starbucks can focus on training the best people, buying the best equipment, run innovative marketing campaigns and strategies. And it can afford to be vertically integrated. As the last sentence suggests, that is perhaps where the difference lies. The core-value of McDonalds is not the same as that of Starbucks. The first started with offering hamburgers for $ 0.15, now around $1; the latter offered premium beans and later coffee for $3.50. This is again a superficial observation, but higher prices translate into a higher budget for quality. Just like Apple maintains high margins for it’s hardware, vs. other PC-makers, it can offer a higher quality of design and customer service than most of its competitors. Similarly, Starbucks can focus on training the best people, buying the best equipment, run innovative marketing campaigns and strategies. And it can afford to be vertically integrated.

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By: full dizi http://www.techiteasy.org/2007/07/28/starbucks-an-example-of-vertical-integration/#comment-5235 full dizi Mon, 30 Nov 2009 23:54:50 +0000 http://techiteasy.org/2007/07/28/starbucks-an-example-of-vertical-integration/#comment-5235 what we do. I expect things to get back to normal in a few weeks. In the Starbucks-book, which I wrote about a little while ago, Howard Schultz discusses the “third place.” This is a term, originally what we do. I expect things to get back to normal in a few weeks. In the Starbucks-book, which I wrote about a little while ago, Howard Schultz discusses the “third place.” This is a term, originally

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By: The “captain’s chair” phenomenon « Tech IT Easy http://www.techiteasy.org/2007/07/28/starbucks-an-example-of-vertical-integration/#comment-2850 The “captain’s chair” phenomenon « Tech IT Easy Mon, 08 Jun 2009 09:43:29 +0000 http://techiteasy.org/2007/07/28/starbucks-an-example-of-vertical-integration/#comment-2850 [...] Schultz’s case, I have actually always blamed its problems on his book, which was essentially a franchise manual for anyone who wanted to set up a coffee-shop, and which might have also inspired McDonalds to [...] [...] Schultz’s case, I have actually always blamed its problems on his book, which was essentially a franchise manual for anyone who wanted to set up a coffee-shop, and which might have also inspired McDonalds to [...]

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By: Why you shouldn’t blog to *just write* « Tech IT Easy http://www.techiteasy.org/2007/07/28/starbucks-an-example-of-vertical-integration/#comment-2851 Why you shouldn’t blog to *just write* « Tech IT Easy Sat, 04 Oct 2008 16:32:55 +0000 http://techiteasy.org/2007/07/28/starbucks-an-example-of-vertical-integration/#comment-2851 [...] the right size in books), Howard Schultz’s “Pour your heart into it,” (reviewed here), and many more which are on my shelves at [...] [...] the right size in books), Howard Schultz’s “Pour your heart into it,” (reviewed here), and many more which are on my shelves at [...]

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By: Which place does the web take? « Tech IT Easy http://www.techiteasy.org/2007/07/28/starbucks-an-example-of-vertical-integration/#comment-2852 Which place does the web take? « Tech IT Easy Tue, 14 Aug 2007 07:06:28 +0000 http://techiteasy.org/2007/07/28/starbucks-an-example-of-vertical-integration/#comment-2852 [...] what we do. I expect things to get back to normal in a few weeks. In the Starbucks-book, which I wrote about a little while ago, Howard Schultz discusses the “third place.” This is a term, originally [...] [...] what we do. I expect things to get back to normal in a few weeks. In the Starbucks-book, which I wrote about a little while ago, Howard Schultz discusses the “third place.” This is a term, originally [...]

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