When Businesses Fix Themselves

It was just before Arnold was elected Governor that he said something about all the “expertise” in Sacramento government that existed, yet the state was still running in the red.

The point of what he was trying to say is that “experience” does not equal success.  Obama used the same argument, Google has used it and so have others.

Starbucks argued that they had no experience with the instant coffee market, but have since entered it and are killin’ it!

I think its a good argument personally.  Anyway, what I am very pleased about both as a shareholder, consumer and general fan of capitalism is what Starbucks has done recently with the introduction of the VIA “portable coffee” product.

Here’s the YTD stock price of SBUX, which I think clearly represents a favorable market response.

First of all, it’s REALLY good coffee for “instant” – probably the best I’ve ever had.  Second – the marketing campaign makes good sense – rather than just being catchy.

Finally – it has been good for business as there’s plenty of times where you might want a good coffee, but can’t get one (not that Starbucks is the “best”, but it’s pretty good).

Here in Canada something like 30% of the coffee brewed at home gets thrown out  – not to mention that few have the time to make and clean up drip coffee.

So for a quick hit of good coffee, a smart business decision to enter what some have said is a “saturated” market comes VIA from Starbucks.

I like it.

Now if GM can only follow through and do something about their brand! Maybe they should get better and smarter about building electric cars and becoming the best at it….

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