Starbucks Fights Back!
Posted by Joe Cannon
McDonalds has had great success with its coffee sales. Introducing a pretty tasty line of java, priced below Starbucks during a recession struck a chord with many consumers. Now Starbucks has “…announced that it would sell one of the premium brands it owns — Seattle’s Best Coffee — in Burger King and Subway restaurants, at AMC movie theaters and at supermarkets and coffeehouses across the country, with 30,000 locations in all.” See “Starbucks Hits McDonald’s with Seattle’s Best” in Time (May 25, 2010).
The opening scenario in chapter one in our text books discusses Starbucks and McDonalds. This provides a nice example of competition and from a strategy perspective about the use of Seattle’s best as a “fighting brand” (not a concept we go into in our books).
This entry was posted on Tuesday, June 1st, 2010 at 1:58 pm and is filed under Competition, Product. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.