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

The Squirrel-Proof Bird Feeder

There is no such thing as a squirrel-proof bird feeder. Why? Because squirrels spend all day and all night, 7 days a week, 365 days a year focused on how to get into your bird feeder. What's the key concept to learn from squirrels in this example? Focus!

Squirrels focus their attention and intention. This is a great business lesson.

As we analyze Marco and Ray's fruit stands, it is hard to point out many differences. They are both located on the same Southern California highway, they both have access to the same demographic, they offer the same selection (at a glance) of fruits, they have the same number of employees, and they started their stands with the same amount of investment capital.

As we dig deeper, we will begin to clarify some subtle differences that lead to the success and mediocrity of each stand. Focus is one of the differences.