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Ideas. Insights. Inspiration.

Disney's Unfortunate Short-termism

Many years ago, someone at Starbucks realized the company could save a significant amount of money simply by reducing the quality of the toilet paper used in its store's washrooms, from 2-ply to 1-ply. The suggestion was brought to senior management for consideration, but they quickly rejected it; they understood that part of the reason people paid such a premium for Starbucks coffee was for the Starbucks Experience, and that a cheaper toilet paper would cheapen that experience... and ultimately damage the brand.

Starbucks decided to be less profitable in the short term so they could maintain their premium experience and be more profitable in the long run.

Choosing the long-term is a decision too many companies have difficulty making.