Here’s some insight for those of you doing online stock trading. Starbucks ($SBUX) seems to be a great stock worth considering now since it seems destined for better days.
Schultz Steps Down to Continue with Entrepreneurial Tasks
Starbucks Corp. is facing increasing competition, but the global coffee shop chain is devising means to deal with it. One of the these means is the stepping down of chief executive Howard Schultz to devote more of his time for the entrepreneurial task of opening new high-end Starbucks coffee shops. Schultz isn’t leaving the company. He just wants to focus on opening new shops for the company in a bid to protect its popularity and defend more effectively from the competition posed by specialty roasters such as Intelligentsia and Stumptown as well as outlets such as Dunkin’ Donuts that has introduced cold brewed coffee and other such high-end drinks.
Schultz will be making way for current President and COO Kevin Johnson who’ll become the company’s CEO. Schultz believes the strategy should involve opening high end stores. Apart from competition from other brands, Starbucks is facing competition from online shopping. Increasing number of people are ordering goods online, keeping themselves from making trips to the mall where Starbucks stores are usually located. Schultz believes the solution lies in opening high-end stores that would offer such a luxurious experience that people would want to come over to these stores.
Starbucks Reserve Stores
Starbucks already has some high-end stores, the first of which was the Seattle Reserve Roastery and Tasting Room. This store has coffee being roasted and offers $12 cups of reserve coffees that are created with the siphon brewing technique. There are 20 to 30 more such high-end stores Starbucks plans to open. A store twice the size of the 15,000-square-foot Seattle store is to be opened in 2017 in Shanghai. In addition to these, Starbucks plans to open 1000 smaller stores that will be similar to the Seattle Roastery but won’t have the onsite roasting. These stores will be branded “Starbucks Reserve”, and their logo will only contain a gold star with the letter “R”.
This is a great identity step the company is making. And the one who’s spearheading this knows a good deal about coffee shops.
Schultz’s Amazing Starbucks Journey
Howard Schultz joined Starbucks as marketing director in 1982, and since then the company has gone through many changes. In 1986 Schultz even left the company following a dispute. But he didn’t leave the coffee business. Instead he started “Il Giornale”, his own coffee shop. It did so well that Schultz even purchased Starbucks’ retail unit. He then renamed Il Giornale “Starbucks” and from there began the company’s expansion to over 25,000 stores globally. Along the way, the company’s IPO happened in 1992.
It’s no doubt that Schultz has a solid plan in mind. And investors can take that into account. Winning trading decisions require in-depth market insight. For online trading, market insight comes with the right trading software that TradeZero offers. Call us at +1 954-944-3885 or email firstname.lastname@example.org.
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