Read on Twitter
Here's the story of how a #coffee chain employee *bought* their employer and created the largest coffee chain in the world 
Thread... (1/10, and yeh, another one
)
Thread... (1/10, and yeh, another one
)
2/ In 1983, Howard Schultz worked as the marketing and retail operations manager for a small chain of Seattle coffee stores.
It was called Starbucks.
It was called Starbucks.
3/ He visited Italy and came across an espresso bar in Milan 
It was an incredibly different experience to how coffee was consumed in the US.
It was an incredibly different experience to how coffee was consumed in the US.
4/ The espresso bar was a theatrical show of coffee roasting performed by a charismatic barista.
Customers stood elbow to elbow at the counter, sipping from their tiny porcelain cups.
Each bar had its own character and customers knew each other well.
Customers stood elbow to elbow at the counter, sipping from their tiny porcelain cups.
Each bar had its own character and customers knew each other well.
5/ On the other side of the pond, Americans viewed coffee as cheap and bland, with only a small group of discerning buyers interested in quality coffee.
That was at odds with Italy, where high-quality expensive coffee was a mass-market product.
That was at odds with Italy, where high-quality expensive coffee was a mass-market product.
6/ Knowing this, Schultz formed a strategic hypothesis:
The Italian espresso experience could be recreated in America and the public would embrace it.
After explaining this, the owners of Starbucks didn't share his belief in the project. He decided to test it out himself.
The Italian espresso experience could be recreated in America and the public would embrace it.
After explaining this, the owners of Starbucks didn't share his belief in the project. He decided to test it out himself.
7/ Schultz set up an espresso bar which was an exact replica of the bar he had visited in Italy.
Now, here's where the magic lies.
If he continued with this replica, his coffee store would have remained a small, single store....
Now, here's where the magic lies.
If he continued with this replica, his coffee store would have remained a small, single store....
8/ But, Schultz instead listened to customer feedback. He continuously adjusted parts of the coffee bar, e.g.:
He changed the Opera music.
He changed up the baristas uniform.
He put chairs in (prev. stand up only).
He introduced paper cups for takeout.
He changed the Opera music. He changed up the baristas uniform. He put chairs in (prev. stand up only).He introduced paper cups for takeout.
9/ All of the info gathered from these iterations gave Schultz proprietary knowledge about the coffee industry - a key strategic competitive advantage.
10/ In 1987, his company bought the name and retail operations of his former employer, Starbucks.
Schultz took the newly rebranded Starbucks public in 1992 and under his leadership, it became the largest coffee chain house in the world.
Schultz took the newly rebranded Starbucks public in 1992 and under his leadership, it became the largest coffee chain house in the world.
This thread was inspired by Good Strategy/Bad Strategy - it's a good insight into the complex world of business strategy!
https://www.amazon.co.uk/dp/1781256179/ref=cm_sw_r_tw_dp_x_YtgCFbNCXME78
(Not an affiliate link)
https://www.amazon.co.uk/dp/1781256179/ref=cm_sw_r_tw_dp_x_YtgCFbNCXME78
(Not an affiliate link)
