Starbucks Gets Web 2.0 Religion, but Can It Convert Nonbelievers?†

New Blog, Social Networks Will Likely Reignite Debate If Move Is an Attempt to Empower Consumers or Advocate for the Brand

Advertising Age, March 24, 2008 — How many ways can its legion of latte-sipping loafers ask for free Wi-Fi? Starbucks is finding out.

Last week at its annual meeting, Starbucks announced the launch of My Starbucks Idea, a social network where consumers can post ideas for how the company can improve its service and products or comment and vote on others' ideas. Voting will be tallied online, with each idea assigned a point value.

Consumers will be kept up to speed on what Starbucks is doing with the proposed suggestions on a new blog, Ideas in Action.

Though the program sounds like a smart Web 2.0 move, it has already drawn a dart or two from observers of the company, and is likely to reignite debate over whether brand-created blogs or social networks are a smart attempt to empower... continue reading

10 Possible Starbucks Responses to McDonald's Coffee Threat

Seekingalpha.com, January 9, 2008 — I've used Starbucks' (SBUX) business strategy as a way to discuss the Trial and Error Economy (here and here). I'm not, by any means, the world's greatest expert on the company, but it provides a great vehicle for teaching about corporate strategy. Now, according to the Wall Street Journal, McDonald's (MCD) will sell premium coffee drinks made by baristas at most of their 14,000 stores.

How should Starbucks react to the McDonald's threat? Here are some ways:

1. Do nothing. Best implemented with one's nose high in the air, saying that Starbucks customers would never buy coffee at McDonald's. Would work very well for three to six months. Ignores the reality that Starbucks' recent growth has come not from Volvo-driving college grads, but from... continue reading

Steve Jobs Offers Rare Apology, Credit for iPhone†

Wall Street Journal, September 7, 2007 — Many people stood in long lines to get Apple Inc.'s iPhone — and paid a lot for it. In the end, Steve Jobs concluded that such loyalty counted for something.

Responding to a flood of emails complaining about a surprise iPhone price cut, Mr. Jobs apologized publicly and said Apple will offer a $100 credit at Apple stores to all iPhone users who paid the original price. "Our early customers trusted us, and we must live up to that trust with our actions in moments like these," Mr. Jobs wrote in a letter posted yesterday on Apple's Web site.