Analysis Of Starbucks’ Competitive Advantage And Value Proposition

Internal Analysis Assessment

1.

Competitive advantages are the conditions which is known to allow a company to produce a very good service at an equal value at a much lower price and in a more distinguishable fashion. These will help the organization to gain more attraction towards itself and increase the number of sales for the organization when compared with the similar category of products in a large range. The mission statement of Starbucks says that the company follows the guiding principles which helps it to stay in a competitive position over its competitors. The guiding principles mainly includes :

• Providing great work environment in order to treat the employees and consumers with respect and dignity
• Embracing the diversity as an essential component
• Applying higher standards of living in roasting and delivering the coffee to the customers
• Developing enthusiastically satisfied customers all the time.
• Helping the community and the environment.

 Yes I do think that the company has gained a competitive advantage over its competitors in the market. According to the author Harrington, Ottenbacher & Fause (2017)the organization has built a very strong sources of competitive advantage. Its global network, premium quality of food and services, and its brand image are the strong points for the company. The Starbucks experience is a combination of empowering the corporate culture which shares the wealth with the employees. This inturn creates a very unique and personal experience among the employees Enz (2009 page number 435 – 437)

The organization is also able to develop innovative products which also shares various types of organizational software and application.  This is known to minimize the risk, timescale the costs of production development which therefore enables the company to introduce a new steam of new and innovative products.

2.

Products

The description of  products of Starbucks are :

• Nitro Cold Brew – The small batch cold brew slow steeped coffee is made by the company in order to make the coffee a very smooth taste which is known to get even better. The organization is also planning to introduce it with the nitrogen flavor for a better taste. It was implemented by the company as because it is a natural sweet taste flavor and more cascading, velvety cream and perfection served at its best.
• Starbucks Spiced Sweet Cream Narino 70 Cold Brew – The Starbucks Narino 70 Cold Brew coffee is a custom blend of 70 percent Columbia Narino and adds on 30 percent African coffee beans. The Slow Steeped is whopping for more than 20 hours gives a separate taste to it.
• Roastery Cold Coffee – It has been about immersing the customers with the craft of cold coffee. The roasted coffee beans are one of the rarest things. It comes in a new Affogato line up and has a separate fan base of its own.
• Mora Iced Creamery – This small coffee flavored with a variety of ice creams which are made with fresh milk , eggs and different types of sugar cranes.

Affogato Coffee – This trio of beverages are made from the classic Italian Desserts that is poured over the ice cream scoop in the rich espresso. It also has a touch of demerera syrup and dustings of cinnamon Harrington, Ottenbacher & Fause (2017).

Resources

The description of resources are :

• Human Resource Management – The human resource of Starbucks is concerned with the activities such as the recruiting, managing, training, development and rewarding the employees in the organization. For this reason they have made it very clear to make all the employees equal in the store rooms.
• Technology Development – The organization is known to have a huge amount of technological innovation. The organization is using technology from regulating the stocks t registering the customers in the cash section. The stores are also wifi enabled which helps the customer to access free internet.
• Inbound logistics – This means that the coffee beans and other products received by the company, which they need to product and service in their stores and package of the subsidiary products.
• Research and Development – the research and development part of the company is known for making the most important decision regarding the use of appropriate coffee beans and delicacies which will make the best in class coffee to the customers. The research and development of the company is one of the best resource accrued by the company as because with its helps the whole organization to smooth.
• Equipment – Starbucks has made a huge amount of expense in its resources which are the time saving and taste creating machines. The organization has made huge expense in setting up the devices to benefit the customers

Core competencies

The core competencies of Starbucks are:

• Unwavering focus on quality – The organization is known to have a clear focus in providing the best quality of products to the customers they will be serving. The organization is spending huge amount of money in developing the products and services.  
• Outstanding customer service – The organization is known to have a best customer service team in its work place. The organization has built a separate team who are known to gather the feedback which is received from the customer.
• Continuous product advancement – The organization is always changing and bringing advancement in the products and services offered by the company. It develops the products with utmost care and serves it to the customers.
• Care for its employees – The organization is doing everything to take care of its customers. According to the author Taecharungroj (2017)organization is taking care of each and every delicate thing to satisfy its employees with the best in class coffee.

Drive to be everywhere – The organization has a present mission that is setting a Starbucks outlet everywhere. This will help the company to gain more customers and have a competitive advantage over its competitors. With the motive of setting up a new Starbuck center and coffee shop in a new place the organization will be able have a greater customer base under the brand (Shirdastian,Laroche  & Richard 2017).

References

Taecharungroj, V. (2017). Starbucks’ marketing communications strategy on Twitter. Journal of Marketing Communications, 23(6), 552-571.

Shirdastian, H., Laroche, M., & Richard, M. O. (2017). Using big data analytics to study brand authenticity sentiments: The case of Starbucks on Twitter. International Journal of Information Management.

Harrington, R. J., Ottenbacher, M. C., & Fauser, S. (2017). QSR brand value: Marketing mix dimensions among McDonald’s, KFC, Burger King, Subway and Starbucks. International Journal of Contemporary Hospitality Management, 29(1), 551-570.

Wu, H. C. (2017). What drives experiential loyalty? A case study of Starbucks coffee chain in Taiwan. British Food Journal, 119(3), 468-496.

Rossing, C. P., Johansen, T. R., & Pearson, T. C. (2016). Tax Anti-avoidance Through Transfer Pricing: The Case of Starbucks UK. In Twenty-Eighth Asian-Pacific Conference on International Accounting Issues: Program & Proceedings (p. 98). Asian-Pacific Conference.

Campbell, K., & Helleloid, D. (2016). Starbucks: Social responsibility and tax avoidance. Journal of Accounting Education, 37, 38-60.

Campbell, K., & Helleloid, D. (2016). Starbucks: Social responsibility and tax avoidance. Journal of Accounting Education, 37, 38-60.

Enz, C. A. (2009). Hospitality strategic management: Concepts and cases. John Wiley and Sons.

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