The article being analyzed is “Starbucks’ Refreshing Innovation” by Braden Kelley. It talks about a new line of beverages from Starbucks that have been produced through rigorous innovation. This new line contains flavors such as cool lime and berry hibiscus. The food company has gone a step further to introduce the concept of green coffee extracts into the market. These new drinks are being marketed under the umbrella of Starbucks refreshers. They are lower in calories and fat hence making them a favorite among many coffee enthusiasts. They are also conducive for lactose intolerant people who have had trouble enjoying hot beverages in the past. These drinks are not based on the traditional coffee. In fact, they do not taste like coffee. Together with this line, the company has introduced a host of other products such as new cafes which will include fruit juices and portable mixes with which one can make their own drinks.
This innovation encompasses the future of beverages and their market. The writer says that the company was trying to consolidate their assets and diversify their portfolio. When an industry becomes competitive, a company has to device means of become relevant and regaining power in the market. Without this, they will quickly be pushed out of the game by other more vigorous companies. The article has suggested that this new innovation will garner the company a stronger standing in the market by bringing in more customers.
When people think of innovation, they always switch to complex industries such as automobile, telecommunication, aeronautics and other fields (Heyne, 2010). People hardly think of the food industry. This is one of the most economically significant sectors and also one which is underutilized. One of the factors that make this industry relevant is the fact that demand for food will never run out. While technologies become obsolete every day, people will always want to eat. Innovation along this line is hence a commendable job and a building block towards the future.
Starbucks is a fast food company. In today’s world, schedules have become very hectic hence forcing people to cut into their leisure time, including the time that they allocate to their meals. The fast food industry is cashing into this phenomenon. People no longer cook at their homes instead they rely on take outs. An innovation such as this one is hence in line with their goal for profitability in the future.
This innovation touches on the aspect of health. As earlier stated, this new line of beverages offer a healthier alternative that the products that have been in existence. People are growing concerned about their health, especially in the light of lifestyle diseases such as diabetes and obesity. People will hence want to consumer healthy foods and drinks. These new beverages are guaranteed to be a cash cow for the company. The positive effects of this product do not only fall on profitability. By offering a heather alternative, the company is helping reduce illnesses in the country brought about by poor dieting. This hence goes to save on financial resources that are spent on health care or working time that is lost due to preventable sicknesses.
The utilization of environmental friendly products to make these beverages is also an additional advantage for the company. Not only does it reflect positively on their environmental record, it also puts them in favor with the market. Every industry is striving to go green (Tuomi, 2002). This is a united effort to save the environment from further degradation. The company has chosen a strategic time to unveil this innovative idea and introduce it into the market. With such bright ideas from other companies, the world will have a better tomorrow in store for the future generations.