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Deidre Woollard's avatar

Starbucks can't compete on cost so if it is offering the same experience as McDonalds, Dunkin etc. it will lose. It has to win on the "little luxury" level that helped it grow in the beginning. It's interesting that Niccol is bringing this energy while Chipotle, his former home, is losing ground to fast casual places.

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Antowan Batts's avatar

I've been seeing this alot. The sort of divergent economy that companies are trying to cater to high income earners and are sort of giving up growing their base. The clv seems to be at the heart of that. It sort of explains why gdp is up but the labor market is weakened. I think we are witnessing a new type of market. But only time will tell.

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Dr. Abdullah Al Bahrani's avatar

Good point. Also most of spending is now done by the top 10%. Companies should be thinking about how to reach more customers and retain them.

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Antowan Batts's avatar

That fact troubles me and almost makes yanis varufakis technofeudalism seem plausible. Your work is so right the US is turning it's back on capitalism .

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