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[通識分享] how Starbucks's success is based on...

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how Starbucks's success is based on...

Chapter 1.

Chapter one first discuss how Starbucks's success is based on the location of the store. Then he discusses the relative scarcity, or any more demanding ideas have more power. Hartford then discussed the "marginal land", describing it as the land that determines the value of other things, which is neither the worst nor the best, but the most useful.

He then discuss the Scarcity power, which is about the normal life of people and citizen,  that the power in a situation goes to whoever possesses a desired resource, especially when the resource is scarce.

Store owners try to take advantage of this scarcity power by being the only shop that offers what they offer, which needs to be something people need, in a convenient area for their target customers.

They then upping prices for their products because they know people need their product and if they are the only place that sells it conveniently, people will be willing to pay more for it to avoid inconvenience.

Marginal lands are the base line for land and changes based on what is available. Store owner always use these lands to set up stores and makes benefits. This lands can easily known as sweat land.

Hartford then explains how our country needs a balance between skilled and unskilled workers to create an effective and balanced system in which immigrants are only threatening the economic part of their entry. Hartford sums up what economists should do to make our economy better.

What chapter one wants to show it’s merchant always sell something to people by the help of Scarcity power.
People drinks coffee in Starbucks near MTR station for convenient. Skilled and non- skilled workers do their own jobs for balance system and benefit themselves. It also said how Drug market, landlord benefit    themselves by not hire the laws.
  
Chapter 3.

Chapter 3 discuss about the cost and the price for merchant and you to pay. If you ask the seller the cost, they may not give you the correct answer as they know they shouldn’t give such high price to sell.

A Buccino’s cost is less than $1, but they sell of $10. If you go around and check, other coffee shops will sell even cheaper like $3 but a same taste.

Some may think the prices will up because of the shop. If you buy a backpack from LV, it’s very expensive.
But you buy a backpack from Nike, it’s cheap.  Why is it such a big difference? Some may say the resource , that’s not accually correct. The reason maybe the name, the name is more popular for LV because people always think LV is the best. So it gives higher prices for their products.

The book next discuss the merchant, they gives a attractive products to attract people to buy, such as an iphone or a multi-coloured shoes, they put their store in the places where the population is on fire. Everyday they grab a lot from the people. That’s they how they do business.
   

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