You may remember my discussion many moons ago of the decline of Starbucks in Australia (and beyond). I sold the Aussie tale as one of poor assumptions about market similarities and failed adaptation.
More broadly their wave of store closures across the US (and beyond) can be seen as an example of a firm overextending on the misguided assumptions that
(i) consumer demand will continue to grow, and
(ii) that new competitors will not appear.
I was amused to see this recent Wall Street Journal piece on a true casualty from the wave of Starbucks’ store closures. Who would have thought one’s quest for fame and notoriety could crash so easily?
I guess he’s an analogy for Starbucks too…