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

Question

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 like Starbucks creates a new need in society, several groups can benefit, including:

1. Businesses that fill other needs: Companies that offer complementary products or services may see an increase in demand. For example, if Starbucks popularizes coffee culture, bakeries and snack food businesses may benefit as consumers look for items to enjoy alongside their coffee.

2. Those who open similar businesses: New market entrants, such as other coffee shops or cafes, can benefit from the trend that Starbucks has set, potentially capturing part of the market motivated by the new need.

3. Suppliers: Suppliers might benefit, but it's more nuanced. If demand for coffee increases, suppliers of coffee beans, milk, and pastries may see an uptick in business. However, suppliers for other products may not benefit as demand for their goods could decrease.

4. Consumers who are willing to pay increasingly high prices: While this may not always be a direct benefit, consumers who value the experience Starbucks creates may be willing to pay more, which drives up profitability for Starbucks and potentially improves the quality and innovation in the market overall.

Overall, creating a new need can result in a ripple effect, positively impacting various stakeholders beyond just the original business.