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Wednesday, October 01, 2003
Coffee Republic ditches sofas to discourage social loafing, tries to turn coffehouses into coffee-as-fast-food.
"...he has decided to turn his welcoming lounges into brisk New York-style sandwich bars where the accent will be on �high customer throughput."
There's nothing like total disconnection with your consumers' needs to give an opponent with an already massive advantage the ability to checkmate you. In this case, it's Starbucks, whose market advantage is based on a well-differentiated strategy aligned with massively protected resources, like brand, standardization & qc, and innovation.
This strategy is also aligned with what consumers want from coffee - a good quality drink, new things on the menu, and a nice welcoming place to sit and chat. Coffee Republic's new strategy, on the other hand, is like radical devolution at work - back to the days of what coffee was like before Starbucks.
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