McDonalds' move into coffee turned out to be a great move. Once people realized they could now get their Egg McMuffin AND their gourmet coffee at the first stop, they were keen on the idea. When they realized that McDonalds' coffee was half the price, they stopped going to Starbucks.

Starbucks recent counter-move? Start selling breakfast food like McDonalds!

In this case, I think we will see it was easier for a cheap brand like McDonalds to lure customers on price. Even if Starbucks lowered all their prices, on every item, the buying public would still see them as "the more expensive choice." Not an enviable position in today's economic climate.

Thank you!

OK, we've sorted the Auto industry, I just put up a post at www.thefullblog.com. What's next?