creasing while their revenues are increasing, which will lead to higher profits (Starbucks Corporation, 1997).
Rapid growth. Starbucks may be expanding too rapidly. As part of its expansion strategy of clustering stores in existing markets, Starbucks has experienced a certain amount of cannibalization of existing stores by new stores as the store concentration has increased, but management believes such cannibalization has been justified by the incremental sales and return on new store investment. The company anticipates that this cannibalization, as well as increased competition and other factors may continue to put downward pressure on its comparable stores sales growth in future periods (Scott, 1995).
Media use. Starbucks does not advertise on television. They rely on word of mouth advertising to spread their business. Starbucks is losing a huge section of the population by not advertising on television. The main customers coming in are those that frequently shop at malls. They are limiti
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