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8 - Starbucks with Flexible Options

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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