Starbucks Core Competencies Essay

896 Words4 Pages
Current Requisite of Capabilities and Core Competencies Starbucks uses its resources, capabilities, and strong relationships with its suppliers, customers and stakeholders to achieve profitability and customer loyalty. Starbucks product offering is one of its main way to cultivate a strategic supplier relationships. Organization to supplier relationships are one of the resources and capabilities that make up Starbucks internal environment. Starbucks value-based approach for building a strong internal and external relationship with suppliers drives the success of deploying the Starbucks Experience. Furthermore, "its business strategy of organic expansion into international markets, horizontal integration through smart acquisitions and alliances that maintains their long-term strategic objective…show more content…
The brand is widely-recognizable in their logo alone. Starbucks takes pride in its quality atmosphere, product line suppliers and partnership that has sustained its competitive advantage and their reputation. Finally, as mentioned earlier, Starbucks benefits from high employee retention rate by saving on training costs and high employee engagement and investment in the organization. Starbucks takes pride on promoting within to help boost morale and performance. Their total rewards program is also used to attract, motivate and retain employees. This quality is extremely valuable in an industry where employee turnover is generally high. Starbucks face the challenges of financial health with the advances of technology. Other threats include premium prices, price volatility in global coffee market as well as changing consumer tastes and lifestyle choices (Geereddy, n.d).Therefore, their requisite capabilities may change. Changes in price will impact the supplier relationship and customer loyalty. In addition, impact the company's ability to control costs and subsequently make

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