Two existing companies that I have chosen to evaluate, one large and one small company, are Starbucks and Dutch Bros Coffee. Starbucks is a large American coffee company that was founded in Seattle, Washington. It has a revenue of $22.4 billion and currently has about 254,00 employees (Starbucks Corporation, 2017). Dutch Bros Coffee is a privately held drive-through coffee chain located in Oregon with revenue of $77 million and growing and only 170 employees (Forbes Media LLC, 2017). I thought it would be cool to see how these two companies are the same and/or differ. Through research, I was able to develop a short list of their top three competitive advantages as seen below. Starbucks: 1. Care for their customers- Starbucks is truly connected …show more content…
Love their customers- Just like Starbucks; Dutch Bros Coffee is all about their customers, maybe even more. They LOVE their customers. This company does whatever they have to do in order to make their customers happy and loved. Even though it may be a quick stop for the customer and they are in a rush, it should be a magical experience (Bolsinger, 2015). This experience can make their whole day. Dutch Bros Coffee is seriously all about the love for their customers and this has put them up there with a competitive advantage that builds relationships and loyalty. 2. Love each other as a crew – Not only does this company love their customers a lot, but also their crew. If their crew is not happy their customers are not, and that affects the success of their business because customers will not have a good experience. That is why this company works on coaching each other and trying to really love one another (Bolsinger, 2015). This is on constant repeat! But this is what gives them that competitive …show more content…
When compared to Starbucks there is not as much to go by yet, since it is a smaller company still, but they are a successful small company and are continuing to grow and be a competitor. In my opinion, I find these advantages sustainable. Although it is challenging at times and there is tough competition out there and rising, these advantages are sustainable. Both companies should be able to make their customers and workers happy regardless, but keeping that passion and care for others should help in doing so. I feel as though if each company is producing and maintaining what they are promising, high-quality products and services, then they should be able to really sustain these advantages, but with that being said both companies should always still be looking for innovative opportunities. Starbucks has shown that they have the financial resources to keep these advantages going on and on, and I feel as Dutch Bros Coffee continues to grow, as they are, they will as well. Both companies are bringing in new customers in and have great competitive advantages, so it is up to the companies to keep that success going and improve when needed. You never know what can happen, and as an entrepreneur, it is always better to be prepared, just like Dutch Bros Coffee will be when they face a
The Hershey manufacturer and the Tootsie Roll company both are firms in confection enterprise; they specialize in a vast form of chocolate sweet products. I compared each companies for the years 2002, 2003, and 2004 towards every different and in opposition to the enterprise averages so as to make a selection about which organization investors would decide on to put money into. The comparisons I used to make this decision were ratios for liquidity, solvency, and
Starbucks and Tim Hortons Nowadays, the number of coffee drinkers are increasing. As the demand for coffee grows, the number of coffee chains is also increasing. Of that, the representative coffee chains in North America are Starbucks and Tim Hortons. Starbucks has the highest brand awareness amongst the world coffee chains. It started in Seattle, the United State in 1971.
What historically have been Apple’s competitive advantages? Apple Inc. has rare case of building a real sustainable competitive advantage in comparison to other brands. These include brand appeal, and strong customer loyalty (Barney, 1991). Apple has successfully enabled strong customer loyalty through effectively fulfilling their customer needs using their unique designs and product innovations.
Political • Growing demand and supply shortage has increased world coffee prices. • Favorable advantage to accessing raw material through supplier relationships. • Fair-trade practices include its Coffee and Farmers Equity (C.A.F.E.) program among other fair trade policies and agreements. • Starbucks adheres to local, national and international government laws and policies and tightly control labour practices, avoiding scrutiny and negative imagery from being a large corporation. Economic • High industry sensitivity to the macroeconomic factors affecting disposable income, a main industry driver.
This firm tries to launch many campaigns based on the three factors of the Triple Bottom Line. As a result, when it comes to Triple Bottom Line framework, Starbucks was given the opportunity to appraise and monitor its operations. Interestingly enough, Starbucks is globally well known by people around the world. In a month, Starbucks’s customers roughly call
Resources and Capabilities Tangible i. Physical: Stores, Distribution Centers and Warehouses ii. Financial: Investments, Expansion activities, Joint Ventures, Licensed agreements and Merchandise Intangible i. Technology: State of the art equipment, highly integrated and advanced information technology ecosystem, mobile and online store ii. Reputation: Strong brand reputation, cult status of Starbucks, strong Association of outlets as “third place” right after home and work, excellent relationship with coffee suppliers Human Resources Well trained employees, dedicated Real Estate team, innovative R&D team, relatively low employee attrition Personalized interaction with
Starbucks sells high quality food and brands for affordable prices. Recently, the company launched a wine collection in addition to the coffee. Now, customers can enjoy a coffee in the morning and a wine after work. This strategy will bring more revenue to the company and will put the Starbucks on the map with other great small shops. The brand has also positioned itself best coffee brand in the market by providing attractive store design, unique environment, elegant taste and high quality coffee beans (Kotler & Keller, 2009).
The strategy that Starbucks uses is broad differentiation where they seek to differentiate their product offerings from rivals’ with attributes that will appeal to a large variety of consumers. The key market characteristic for the strategy of differentiation to work is that buyers’ needs and preferences are very diverse and cannot be satisfied with a standardized product offering. This is an evident characteristic of the market because consumers all have different preferences on the way they like their coffee. Which is the reason why Starbucks offers many different product options like lattes, skinny lattes, coffee, iced drinks, blended drinks, etc. They also offer fruit cups, water, and bakery items to provide even more options for their consumers.
IMPACTS OF ECONOMIC FACTORS ON STARBUCKS The ongoing global economic recession is the prime external economic driver for Starbucks. As I already mentioned, this factor dented the profitability of Starbucks. This has convinced buyers to shift to cheaper alternatives. As they did not quit buying coffee, Starbucks should seek an opportunity here. The company has to deal with rising labor and operational costs.
Introduction: Marriott International Inc. - Marriott International, Inc. is one of the top leading hospitality company in the world. J. Willard and Alice Marriott were the founder of the company. From past 80 years, it has always been looked under the guidance of Marriott family. The headquarter of the company is situated in Bethesda, Maryland, USA. The company revenue for fiscal year 2013 was estimated to be $13 billion dollars.
The article presents information the success of the coffee company Starbucks. Topics include details on Starbucks' focus on the company's employees, or partners, and the effect on sales and customer satisfaction, details on the company's benefits for employees such as tuition reimbursement, and mention of the company's innovation through items such as their Starbucks Rewards mobile-payment application. Wong, V. (2015). Coffee, mate.
Starbucks was founded in 1971. They have 18.850 stores in more than 40 countries which makes them the first coffee specialty retailer in the world. They operate most of their stores having only 50 franchises (as of 2017) as to keep strict control over quality. The success of Starbucks is based on their unique value proposition. They offer customer the finest coffee produced by themselves, with strong commitment on creating a global social impact, served in stores that promote a welcoming and warmth sphere where everyone can feel “like home”.
It is the long-term self-interest of Starbucks. Conclusion In conclusion, Starbucks only concern and goal is to generate profit. Thus, to achieve their goal, Starbucks is selfishly putting the small coffee retailers out of business to gain more profit and disregarding the effect that it could cause to the various stakeholders.
The four building blocks of competitive advantage can be used to help a company become more profitable and stay ahead of their competition. The four factors are superior efficiency, quality, innovation, customer responsiveness. All four building blocks are important to any company. However, I believe that customer responsiveness is the most important because having loyal and happy customers can make or break any company. The four building blocks can help companies grow and become the leader in their industry over their rivals.
The variation between Coffee and Espresso Today we are going to examine the main differences between espresso and coffee. You will know more about the two drinks before ordering them after going through this guide. The Similarities between the two drinks Firstly, let look at the relationship between coffee and espresso. In that way, you will begin to discover the similarities between the espresso and coffee drinks.