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What Is Starbucks Competitive Advantage

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Starbucks Case Study Summery
Starbucks has a very strong competitive advantage among many multi-national coffee-chain. This report addresses to how Starbucks has reached to this position and how it sustains its competitive advantage as it expand its stores worldwide, which might increase the risk to change also the key issues this firm is facing how to overcome them and alternative actions.

Starbucks started as a small store in Seattle’s Pike Place Market in 1971. The name Starbucks was chosen in honor of one of the characters in Moby Dick’s first mate. From being a small coffee bean roasting shop in Washington turning up into a multinational organization, It mainly focused on three main elements such as providing multiple items, an outstanding …show more content…

Also added is a mobile app that could locate Starbucks locations.
In Starbucks SWOT analysis the strategic factors summary shows that the most important factors overall received a score of 3.9 which is above average and it is positive for the company because it explains that Starbucks is responding well to their strength, weaknesses, opportunities and threats. After some recent re-purposing it is clear that the company is focusing on its core competencies but can also improve.
Another analysis as of Porters 6 Forces and their level of threat to Starbucks shows that the bargaining power of suppliers is high because of the natural resources needed to create the best quality coffee as Starbucks believes in finding fair-trade and high quality beans, mostly from other countries due to which they have less number of suppliers. The threat of new entrants is medium, however the coffee market is changing and with the share and change in the …show more content…

The current value curve for Starbucks and its most relevant competitors Peets, and the McCafe Line shows somehow a threat to Starbucks becoming part of a red ocean.
For which Four Action framework should create more customization by allowing users to create new flavors and drinks online not only this, but also user can order online and can find the nearest Starbucks. To enhance the Starbucks brand in the new digital era and to create a blue ocean for the coffee experience an online system or may be mobile app is necessary.

Starbucks has maintained its position in the market and has a competitive advantage for creating its original blue ocean of bringing high quality coffee choices to the masses. To avoid competitors such as McDonalds and other coffee chains they will need to bring innovation by enhancing the customer experience by investing in online customized content and interactivity rather than creating more new products. Starbucks has its strength in their brand and by increasing the connection with their loyal customers they will separate themselves

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