So, what's the problem?

So, if you read my last post on September 11th, you might be saying, "Ray's fruit stand sounds pretty good. He is doing some pretty good stuff." My quick answer to that questions is, yes, he is. However, where does he excel? As we explore both fruit stands further, we will outline the differences between the two, and you will see the fundamental problem with Ray's stand.

Starbucks

Starbucks reported solid earnings again for its fiscal 3rd quarter. They posted a rise in profits of 9% as they continue to FOCUS on the experience created for their customer. Starbucks is a great example of an organization whose management continues to execute strategy. Their value proposition is clearly Product Leadership. However, their "product" isn't necessarily the machiatto or the latte but rather the "experience." They are a product leader in delivering a superior experience to their customer.

This is a similar product to what Marco has chosen to deliver to his customers. What's the "experience" your company delivers?

Check out Sam Decker's site on the business of Starbucks at http://decker.typepad.com/welcome/2007/08/index.html