We discussed recently about creating shared value.  This came to mind once again when I came across George Anderson’s article.

As of recently, Starbucks has begun discussion regarding potential delivery services the company can offer.  Starbucks, already with thousands of stores worldwide, many of which offer  drive through service, provides coffee lovers with nearly every service with the exception of delivery.  Some propose Starbucks forge ahead with this plan – isn’t Starbucks in high enough demand for this idea to yield success?

However, after considering both pros and cons, I came back to the idea of creating shared value.  Although seemingly on a smaller scale, it can be noted that this new service would provide no shared value between customers, society as a whole, and Starbucks itself.

How many trips a day can one delivery person make, and how much is the average purchase for each trip?  $3?  $5 at most?  How much should the company set aside for gas?  What about the customer experience as a whole?  Is their drink going to arrive piping hot with a dollop of cool whipped cream?  What if the drink doesn’t meet their standards?  Is their a refundable option or will the employee have to make another trip back to the store?

Although Starbucks understands the act of “re conceiving products and markets”, Starbucks fails to “redefine productivity in the value chain”.  Ultimately, this provides more room for error with higher chances of customer discontent.  Starbucks should look at all aspects of this plan before embarking on its new delivery adventure.

Sources:

http://www.forbes.com/sites/retailwire/2014/11/06/can-starbucks-deliver-please/

https://blogs.ubc.ca/courseblogcl_ubc_comm_101_101_2014w1_44739-cl_ubc_comm_101_101_2014w1_44739_2045960_1/files/2014/05/Class-15-CSR-Sustainability.pdf

http://popwrapped.com/news/69731/starbucks-offering-delivery-starting-next-year/