10 Jul Starbucks: Innovating to the Core
You may have heard the term “core competency.” Sure, it’s a nice buzzword. But what does it really mean? To explain it, I’d like to recall my visit to Starbucks this morning. See, I usually go there for my morning latte. Today, though, they had a new product. They called it a Raspberry Refresher, a tea-type drink with real raspberries in it. I was offered a sample. “I need my caffeine,” I replied. The barista responded, “this has as much caffeine as your regular latter and its only 60 calories. I perked up. Hmmmm…. worth a try? Of course it was. So I drank the Refresher instead.
It was good, but it also reminded me of something. Starbucks is darn good at sticking to their core competency, to provide caffinated beverages that become a bit habit forming in nature. Anyone who knows me can tell you, I want my lattes. I’m not giving them up for anything. Will I make the switch, likely not. However, this product extention gives Starbucks the ability to do what they do best (core competency) making delicious caffinated drinks and bring in some customers during the summer who don’t want a frappucino but still want something cold and refreshing.
So, what are you best at? How have you turned it into a Cash Machine? How much money are you making with it? Talk to me.