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A Crack in the Mug, Can Starbucks Mend It?

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A crack in the mug, can Starbucks mend it?
In January 2008 Starbucks announced the closer of 100 US stores, but that number grew to 600 by July of 2008. After 20 years of remarkable growth, the last six months of 2007 saw Starbucks shaken by a decline in share price of 50 per cent and a reduction in customer visits to its outlets in North America. Its share price declined from $19 to $18.00 by mid-2008. The company’s brand image took a major hit with a $0.09 cent increase per cup and several similar increases in price over the past four years. All of this has led to disapproval from their shareholders.
To increase favor with their shareholders, Starbucks will need to do a combination of tactics .They need to increase their sales quite a bit in order to suppress the shareholders fears. As long as consumers buy, the shareholders will buy stock, and feel comfortable with keeping it. To get consumers to consume more, they need to offer more of their products. They could possibly start offering products that they currently do not offer but use in making their products. For example they could start selling the accessory items like spices, syrups, sprinkles and the rest of the things that makes Starbucks so great. These are items that already have a great demand with preexisting Starbucks customers since they are used with all of their most popular items. Also, since Starbucks has no complete advantage over their major competitors like McDonalds and Dunkin Donut, one thing they can do to increase their customer base is by lowering prices to be more comparable to their competitor, but with that they would run the risk of lowering the perceived value of their product since customers consider Starbucks to be a premium coffee, unlike McDonalds and Dunkin Donut. If they lower the prices of their products they would need to make sure that their price is still greater than

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