Monday, November 22, 2010

Starbucks Competitive Advantage


Competitive advantage is an advantage in which a company outperforms others in terms of productivity, quality, price of products, superior service, better technology, and higher profit. An example of a company with competitive advantage is Starbucks.

Starbucks Corporation has been around since 1971.  What makes Starbucks unique from other coffee-bar shops is not only their wide selection of products, but the environment they provide to all customers. Starbucks sustains competitive advantage by constantly looking for new ideas, new products, as well as new experiences for guests. Starbucks also offers a selection of music, and unique designed coffee mugs. The company even hires designers to come up with artwork for commuter mugs.  Starbucks’ forte is incorporating differentiated features such as their different flavored coffees that no other company offers. They constantly come up with new features such as the “VIA coffee blend,” and recently, Starbucks has created the flavoured VIA coffee blends. It comes in cinnamon, vanilla, and caramel. They have been selling very fast. Market trends are constantly being monitored by Starbucks as well.  They study every city’s personality and how their products can best fit into the community. Every season, Starbucks comes out with promotional drinks and flavours, which attracts more customers to try their drinks before they are gone.
I work at a Starbucks in Aurora. My manager makes sure that we give each customer a “Starbucks experience” by greeting them nicely, chatting with the customers and giving them attention, and making their drink consistent, accurate, and quick every time. Although Starbucks prices range very high, it is because customers are paying for service, and quality as well. Customers love what they are drinking, and are willing to pay the price, and it is making Starbucks a lot of profit, giving them great competitive advantage.

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