Flexibility
is an asset in uncertain markets and coffee choices are very uncertain. To be
leader in Coffee serving industry Starbucks maintained its lead by providing
variety of drink and many customization options, such as serving drinks with
soy or coconut milk for non-dairy consumers, cold healthy beverages for health
conscious consumers, non-coffee drinks for non-coffee consumers, adding extra
shots for a small fee, using raw or engineered sugar or honey as sweetener,
adding flavors such as cinnamon or vanilla, and many other
customizations. With so many options Starbucks suits majority of
consumers.
Starbucks is also flexible adapting to consumers tastes. They
listen to consumer preferences and adjust their offerings. Not only start new
beverages, but they are also ready to discontinue if some drinks not appeal to
customers very well. Since they are expanding in China and India, they have
introduced many Tea beverages, both hot and cold. Chai Latte is something like
Chai, the most consumed casual drink in India.
Starbucks also flexible in adopting to non-coffee demands and
offer many food items which go very well with a cup of coffee, either as
breakfast, lunch, or snacks. Cake Pops and Cake breads are two most consumed
food items.
Starbucks
also keeps its options open for any new consumer preferences. They are using
latest computer machine learning and AI technologies to predicts and discover
customer choices and offer good combo offers to make more sales.[1]
All
such flexibility options cost Starbucks a lot. With every new drink, they must
train their baristas and staff, invest in marketing, adjust the new product
material in supply chain, and add new suppliers. It must invest heavily in R&D
to invent and ingesting the new drinks based on local and international needs,
keeping Starbucks brand in scope. Investing in IT and technology is also very
expansive, as this is high-skill job and needs high-skill employees who mostly be
paid best of industry salaries and benefits to attract and retain best talent.
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