When a business such as Starbucks creates a new need in society, who else benefits?

Question

Responses

businesses that fill other needs

those who open similar businesses

suppliers when demand decreases as a result

consumers who are willing to pay increasingly high prices

Answer 1

When a business such as Starbucks creates a new need in society, the following groups benefit:

1. Businesses that fill other needs: As Starbucks creates a new market for specialty coffee and related products, other businesses may emerge to fill complementary needs, such as pastry shops, cafés, and food vendors.

2. Those who open similar businesses: Entrepreneurs who establish similar coffee shops or cafes can benefit by capitalizing on the demand that Starbucks has helped generate, leading to more competition in the market.

3. Suppliers when demand increases: Contrary to the option that mentions a decrease in demand, suppliers typically benefit from increased demand for coffee, pastries, and related supplies that arise from the overall growth in coffee consumption.

4. Consumers who are willing to pay increasingly high prices: Some consumers may benefit from expanded options and higher quality offerings, but generally, increased prices may not be advantageous for consumers. However, those who value the brand or experience may be willing to pay more.

Overall, the most direct beneficiaries of a new need created by a business like Starbucks are likely to be other businesses that enter the market and suppliers who provide the necessary products.