During the 2000s, Starbucks was on a massive tear.
Sales went through the roof. The brand expanded rapidly, growing from about 3,000 stores to more than 15,000 worldwide.
To manage the expansion, the company focused on efficiency — at the expense of customer experience. Stores became (even more) soulless and, crucially, the quality of the company’s coffee declined.
The brand suffered badly, and by 2007, sales and profits went into a steady decline. By 2008, Starbucks was in full crisis mode, shuttering stores and prompting founder Howard Schultz to return as CEO.
Starbucks became a victim of its own success — and a classic example of a “growth trap.”
The growth trap is a well-studied business phenomenon characterized by rapid expansion that overwhelms operations.
If a product or service becomes too successful, it can swamp operations, kill quality control, exhaust resources, and turn a booming business into a failing one.
Apple is facing its own growth trap with the wildly successful MacBook Neo.
The new low-cost MacBook is so popular, it’s about to create a massive headache for Tim Apple — whose options aren’t straightforward.
Also in today’s newsletter:
These new pet trackers sound insane: They not only track your furry friend, but also monitor the animal’s health and a bunch of behavioral metrics, like whether they’re scratching themselves too much. I know what it’d say about my fleabag dog.
Amazon’s currently selling the fab 15-inch M5 MacBook Air for the lowest price ever.
The Artemis II moonshot generated some of the most amazing space photos ever — and here’s an easy way to turn them into wallpapers.
🔥 DEAL OF THE DAY: Maker of fine Apple accessories Twelve South is running a sale of up to 50% off select products, including the great and very handy AirFly Pro 2 Bluetooth transmitter (17% off until 04/11). #affiliate
Poor John Sculley is wrongly maligned as one of Apple’s worst CEOs. But he did a lot of things right (even, arguably, firing Steve Jobs).
— Leander Kahney, EIC.
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One more thing ...
If I look at myself and ask, “What am I best at and what do I enjoy most doing?” I think what I’m best at is creating sort of new, innovative products.
Today’s poll
Do you use a pet tracker?
Results from yesterday’s poll: What kind of iPad case do you use?
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