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    P3-3: What Competitive Advantages Do You Think Starbucks Has? What Will It Have To Do To Maintain Those Advantages? (Hien)

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    Thư Võ
    Starbucks has several competitive advantages that have allowed it to outperform competitors. These include its premium branding and pricing strategy where customers see Starbucks coffee as an affordable luxury. Starbucks also focuses on ambiance, creating a comfortable third place environment in its stores away from home and work. Additionally, Starbucks launched a loyalty program that has over 48% of loyalty app users and has increased weekly customer visits. To maintain its advantages, Starbucks continues to differentiate itself through a superior customer experience, high quality coffee, and attention to trends by introducing new seasonal drinks. It also trains employees to provide customized drinks and maintain a welcoming store environment.

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    P3-3: What Competitive Advantages Do You Think Starbucks Has? What Will It Have To Do To Maintain Those Advantages? (Hien)

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    Thư Võ
    98 views2 pages
    Starbucks has several competitive advantages that have allowed it to outperform competitors. These include its premium branding and pricing strategy where customers see Starbucks coffee as an affordable luxury. Starbucks also focuses on ambiance, creating a comfortable third place environment in its stores away from home and work. Additionally, Starbucks launched a loyalty program that has over 48% of loyalty app users and has increased weekly customer visits. To maintain its advantages, Starbucks continues to differentiate itself through a superior customer experience, high quality coffee, and attention to trends by introducing new seasonal drinks. It also trains employees to provide customized drinks and maintain a welcoming store environment.

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    Case Starbuck. Chapter3. Case3.3

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    Starbucks has several competitive advantages that have allowed it to outperform competitors. These include its premium branding and pricing strategy where customers see Starbucks coffee as an affordable luxury. Starbucks also focuses on ambiance, creating a comfortable third place environment in its stores away from home and work. Additionally, Starbucks launched a loyalty program that has over 48% of loyalty app users and has increased weekly customer visits. To maintain its advantages, Starbucks continues to differentiate itself through a superior customer experience, high quality coffee, and attention to trends by introducing new seasonal drinks. It also trains employees to provide customized drinks and maintain a welcoming store environment.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    98 views2 pages

    P3-3: What Competitive Advantages Do You Think Starbucks Has? What Will It Have To Do To Maintain Those Advantages? (Hien)

    Uploaded by

    Thư Võ
    Starbucks has several competitive advantages that have allowed it to outperform competitors. These include its premium branding and pricing strategy where customers see Starbucks coffee as an affordable luxury. Starbucks also focuses on ambiance, creating a comfortable third place environment in its stores away from home and work. Additionally, Starbucks launched a loyalty program that has over 48% of loyalty app users and has increased weekly customer visits. To maintain its advantages, Starbucks continues to differentiate itself through a superior customer experience, high quality coffee, and attention to trends by introducing new seasonal drinks. It also trains employees to provide customized drinks and maintain a welcoming store environment.

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    P3-3: What competitive advantages do you think Starbucks has?

    What will it have to do


    to maintain those advantages? (Hien)  
    Definition of Competitive Advantage: What sets an organization apart; its distinctive edge.
    (Management Textbook) In other words, a factor that allows an organization to outperform its
    competitors in a particular field.

    According to the textbook, Starbuck was voted the most dynamic brand in the previous two
    decades. So what is the reason why Starbuck has been called like that ? Because they have a
    large amount of features that other competitors don’t. 
    Competitive advantage:
     Ambiance:
    Starbucks is a premium coffee brand. Its pricing strategy is also a key strength. Despite the high
    price, most customers are willing to pay the premium prices it charges because of its focus on
    quality and customer service. According to Harvard business school, purchasing a cup of coffee
    became an “affordable luxury” and an experience in itself. And customers were able to order
    customized drinks and enjoy the beverage in a relaxed, upscale environment. Besides that,
    Starbucks is known for its great ambiance, including comfortable chairs, music, fragrances, and
    the hissing steam from the espresso machine. Starbucks has grown more valuable than ever
    before as a result of all of these factors. According to Linkedin, Starbuck stores are effectively
    positioned as a “third place” away from home and work, where people can spend time in a
    relaxed and comfortable environment with their friends or alone.
     Starbuck reward program:
    - An essential feature that distinguishes Starbucks from competitors is that they launched the
    Starbucks’ loyalty program for customers according to the textbook. It has managed every
    aspect of the Starbucks experience to offer each customer a fulfilling experience. For example,
    this program allows customers to make payments, collect their beverages and redeem rewards
    via the mobile app without the torture of queuing or enduring indecisive fellow customers (mà
    không phải chịu sự tra tấn của việc xếp hàng hay chịu đựng những khách hàng thiếu quyết
    đoán). Research by Manifest revealed that of all mobile users who regularly use restaurant
    loyalty apps, nearly half of them (48%) use Starbucks Rewards. Furthermore, in 2011,
    Starbucks launched the Starbucks Card mobile app, enabling mobile payment and by 2019,
    71% of Starbucks app users were visiting a store at least once a week, according to Numerator
    - a market intelligence and consumer insights provider. 
     Keep up with trends:
    - The company knows that they have regular customers, but with them coming out with
    seasonal drinks attracts people to come and try their “drink of the season”. In each special
    occasion of the year, Starbucks always introduces to customers new products which will
    stimulate preferences and avoid the boredom of customers. Moreover, the baristas in Starbucks
    can customize any drink you want. According to Business Insider, Starbucks owns at least
    17,000 recipes all over the world. 
    Maintain:  
    According to Michael Porter, the general strategies can be used to achieve a sustained
    competitive advantage is differentiation 
     Starbucks has maintained a competitive advantage through its differentiation strategy of
    being a premium and distinctive coffee consumption supplier.
     Differentiation is defined as delivering high-quality products or services that are viewed
    as unique and valuable by customers. Starbucks' approach for gaining a long-term
    competitive advantage is around product differentiation.
     Starbucks distinguishes itself by providing a superior customer experience and high-
    quality coffee. Starbucks achieves the “Starbucks Experience” through well-designed
    stores with a pleasant ambiance and well-trained employees. According to research
    performed by the Daily Mail, Starbucks stores had a more welcoming décor and nicer
    baristas than independent coffee shops.

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