Interesting article in today's WSJ about the market's response to weaker sales and Chairman Howard Schultz's memo last week indicating that the "push for efficiency may be diluting the brand and has made the company more vulnerable to encroachment from fast-food chains and oter competotiors."
The article goes on to discuss the positive links that a strong brand has directly on driving stock price amid weak sales numbers. Even in the face of stronger competition (McDonald's is offering expresso now in select stores), the Starbucks brand can still be positioned as a stock to watch with solid growth potential.
Howard Schultz is in Seattle today at the investor's conference to assure investors that the brand is as strong as ever, meaning so is the company.
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Starbucks' brand expansion into publishing, music, and movies was featured last night on NBC Nightly News, prompting Brian Williams to ask, "Is Starbucks in danger of diulting their brand?" Check out the video here:
http://video.msn.com/v/us/msnbc.htm?f=00&g=58afd2ab-26a5-40a7-b1a6-cf03e883812b&p=hotlist_m_edpicks&t=c24&rf=
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