Starbucks Sources of Competitive Advantage Key Questions o

Starbucks: Sources of Competitive Advantage

Key Questions o Do you like Starbucks? o Why do people buy Starbucks? o. What are people buying when they buy Starbucks? o Is the company successful? o. What o What are key measures of success? are Starbucks core resources? …capabilities? o What should Starbucks do?

Products o Coffee o. Made-for-you o. Make-it-yourself o. Bottled/canned o Coffee-related o. Ice Products Cream o. Beer (Red Hook Stout)

What is Starbucks? o Coffee o. High quality o. Interesting blends/brews o. Consistent o Coffee Drinking Experience o. Upscale, hip o. Consistent o. Place to be

SBUX Stock Price $30 $10 1997 1998 1999 2000 2001

Keys to Success o What are Starbuck’s strengths? o Are they: o…valuable? o…rare? o…inimitable?

Value Chain of Firm Activities Firm Infrastructure Human Resource Management M A R Technological Development Service Marketing & Sales Outbound Logistics Operations Inbound Logistics Procurement G IN

Resources and Capabilities o Image, reputation o Real estate o Knows customer o Participation in full industry value chain o. Inbound logistics, Sourcing o. Roasting, operations o. Outbound logistics, distribution o. Marketing o. Service

External Analysis o Opportunities: o Threats:

Strategic Recommendations o Do XX o. Value chain activity ‘a’ o. Value chain activity ‘b’ o. Result: o Do YY o. Value chain activity ‘a’ o. Value chain activity ‘c’ o. Result: