Friday, May 14, 2010

Scipio Africanus: Starbucks vs. McDonalds

Scipio Africanus according to Dr. Laurie of The California State University Long Beach is a strategy where a company attacks the market of another company, and the second company in retaliation attacks the first company market. One example is the current situation with Starbucks and McDonalds. In retaliation of Starbucks intent to sell sandwiches, McDonalds launched a coffee campaign and remodeled all their stores. The coffee, many argued, was better and at a much better price. This spring McDonals launched another coffee strategy: frozen frappes. Directly attacking Starbucks frapuccino market. However, Starbucks has launched a defensive strategy: attacking McDonalds cheap coffee. Starbucks by using one companies acquired seven years ago, Seattle's Best, is planning to expand to a mass market by using the slongan "Great Coffee Everywhere."

In my opionion this is a risky strategy; Starbucks is dealing with a giant company with unlimited resources. Thus, in order for this to work, Starbucks needs to make sure to take over the market. According to Ralph Waldo Emmerson “When you strike at a king… you must kill him.”

No comments:

Post a Comment