Yes! Starbucks in the USA is not just about coffee; it's much more than that. It's essentially a lifestyle.
When people think of coffee, Starbucks immediately comes to mind.I am from Mexico, and in emerging economies like you mentioned, Starbucks is seen as a luxury.
We go there to meet people and hang out, and indeed, we do just that.
Their loyalty program is incredible! And as you mentioned, AI 🤖 can't replace their business model
I am not so sure about this. In the article the option was provided to have $50 billion to create a successful competitor using AI. How about an approach that is fully automated using robots that have AGI-like abilities and can offer what Starbucks offers combined with the convenience of “on-demand” You basically order or have access where you are without drive thru. Imagin e an Amazon Prime versus Starbuck retail. With billion I could see that work and be more successful as it would become the new norm. Anything retail will have to recognize this threat.
I see the point but, respectfully, I don’t agree. First, that would be immense initial fixed cost for a new entrant, I don’t think this option is viable for new entrants. When it comes to incumbents, it is very easy to replicate such an incremental innovation for the market leader. Everything you mentioned can be successfuly and rapidly matched by Starbucks. They can employ robots and AI better and faster then rivals due to unmatched store network and financial resources. However, it may take decades for a new entrant to create a user base in its mobile application like Starbucks did, convince users to transfer money to that app and generate significant revenue by using that money just like a bank.
Yes, you are right. Replace might not be possible but for me a global leader is also always impacted by geo-politics. Just imagine for a moment that the chasm between the G20 and the rest of the world keeps getting deeper. If Asia and maybe BRICS countries decide that they don't want to allow Starbucks anymore in retaliation for banning TikToc and Huawei by G20, and $50 billion were available for full AGI based, robotics Asiabucks, I think it could grow to Starbucks size and beyond when looking at customer base. I know what you mean with a Moat, but using that military term also means you are only protected in the lands you have access to.
You are on the Asia risk, but I see as an unsystematic risk that you can’t discount. You can either take it or not. I see this risk currently low and thus I am willing to take it. I understand and respect all you said, but I respectfully disagree.
Warren Buffett? Never heard of him. Great write-up, Starbucks is a position I hold dearly.
He is pretty famous 😂 thank you for the contribution bro!
Yes! Starbucks in the USA is not just about coffee; it's much more than that. It's essentially a lifestyle.
When people think of coffee, Starbucks immediately comes to mind.I am from Mexico, and in emerging economies like you mentioned, Starbucks is seen as a luxury.
We go there to meet people and hang out, and indeed, we do just that.
Their loyalty program is incredible! And as you mentioned, AI 🤖 can't replace their business model
Really great article!
Thank you for the support! I am very happy you oiked it, trying to put out my best!
I am not so sure about this. In the article the option was provided to have $50 billion to create a successful competitor using AI. How about an approach that is fully automated using robots that have AGI-like abilities and can offer what Starbucks offers combined with the convenience of “on-demand” You basically order or have access where you are without drive thru. Imagin e an Amazon Prime versus Starbuck retail. With billion I could see that work and be more successful as it would become the new norm. Anything retail will have to recognize this threat.
Thank you for the contribution!
I see the point but, respectfully, I don’t agree. First, that would be immense initial fixed cost for a new entrant, I don’t think this option is viable for new entrants. When it comes to incumbents, it is very easy to replicate such an incremental innovation for the market leader. Everything you mentioned can be successfuly and rapidly matched by Starbucks. They can employ robots and AI better and faster then rivals due to unmatched store network and financial resources. However, it may take decades for a new entrant to create a user base in its mobile application like Starbucks did, convince users to transfer money to that app and generate significant revenue by using that money just like a bank.
Yes, you are right. Replace might not be possible but for me a global leader is also always impacted by geo-politics. Just imagine for a moment that the chasm between the G20 and the rest of the world keeps getting deeper. If Asia and maybe BRICS countries decide that they don't want to allow Starbucks anymore in retaliation for banning TikToc and Huawei by G20, and $50 billion were available for full AGI based, robotics Asiabucks, I think it could grow to Starbucks size and beyond when looking at customer base. I know what you mean with a Moat, but using that military term also means you are only protected in the lands you have access to.
You are on the Asia risk, but I see as an unsystematic risk that you can’t discount. You can either take it or not. I see this risk currently low and thus I am willing to take it. I understand and respect all you said, but I respectfully disagree.
That's totally fine and we can both monitor and see what is ultimately the result that is closer to what we expected to happen 😁
One of the best and most knowledge writers here on Substack by a country mile. Awesome writeup man.