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I came to the US, to make high-nutrient, disease-immune and easy to grow genetically engineered potato. Initially, I was concentrating on the science side, but eventually started to realize, that it is not only science that needs to be changed but also the 'system' where scientific innovation resides. After completing a doctoral degree in bioengineering and innovation management, I have ventured to study international management and international politics, as a means to study science policy. My eventual goal is to apply the science policy in developing nations, but I am now focusing to apply in Japan, where the country is in deep trouble, not being able to align the country with rapidly spreading globalization.

Sunday, April 17, 2011

Starbucks and Innovation

What does Starbucks sell? Coffee? Yes, but not only coffee. Caramel Mocha Frappuccino? That too.
They sell the ambiance and space (I guess they now have drive-thrus...I wonder how they are doing with that...in fact, they would prefer those customers, as they don't require any space! and they don't spill coffee etc onto the furnitures, and they have fast turnaround!)

As for the ambiance... the nice couches, calming music and the aroma of coffee beans (and WIFI!). You see a lot of people working away with their computers, and it appears that the coffee (or whatever) that they have ordered have already turned cold, but just like having paid the 'entrance fee', people are just sitting down and minding their own business.

Will Starbucks ever completely turn into providing all drive-thrus? I wonder what the breakdown is in terms of their business for drive thrus and normal sales...If drive thru is popular, that means that the customers are coming to Starbucks for the products that they offer (the sugar, fat and caffeine...and flavor), if they go completely drive-thru, they can possibly save a lot of the rent, especially in the urban areas.

I guess one could see the space where people hang out (the ambiance) can be seen as a marketing strategy. If one person is in there, and the other needs to meet the person inside, then he/she will have to enter and buy something (if they feel guilty) if they decide to stay for a long time.

Some people say that the starbuck paper cups with the logos are status symbols in some parts of the world as Starbucks coffee is very expensive. I guess strictly keeping to drive-thrus will eliminate the exposure of the logos inside the city, as the cups will be kept inside the car...

Making value from ambiance...interior designers are innovators. I guess all designers are designers are innovators by nature, in fact all artists are also. (That point, I can definitely come back to it in later entries)...




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