Major Drivers of Starbucks’ Competitive Advantage
Several drivers contribute to Starbuck’s competitive advantage. Frist, by offering a wide range variety coffee offering in a comfortable setting, the third place beyond home and work, Starbucks has created value for customers in a way they are willing to pay more than its competitors. Second, the unique customer experience and culture in stores provided by friendly barista and supported by Italian lingo for drink sizes, increase the perceived customer value by differentiating Starbucks with competitors. Third, Starbucks’ regular innovation in new products’ flavor, along with increasing the number of stores, helped it achieve economies of scale and scope. Finally, by replacing La Marzocco espresso machines with push-button machines, Starbucks simplified the hiring and training process and enhanced goal for meeting the three-minutes service by reducing time.
Internal & External Analyses
Several competencies stand out from a VRIO-framework perspective. Starbucks’ wide presence in term of 16,858 stores globally is a valuable and