Starbucks Competitive Advantage

I believe that the primary objective of all business organizations is to achieve considerable competitive advantage in face of competitors. Grant (2010) attributes the role of resources and capabilities as the pillar for strategy to two variables. Firstly, instability of firms’ industry environments, therefore resources and capabilities are seen as a securer factor in formulating strategy. Secondly, competitive advantage is the main source of profitability rather than industry attractiveness. Grant (2010) also mention that Competitive advantage can be the result of cost advantage which depends on the process technology , size of plants and access to low-cost inputs, while differentiation advantage comes from the brand, product technology and

Foss (1998) asserts that RBV focuses mainly on the resources and capabilities in which company have; furthermore he indicates that this means that all organizations develop unique resources and capabilities in which are the main source of competitive advantage and that the best that differing resources and capabilities provides the company with the potential for competitive

The Primary activities include: firstly, inbound logistics, in which Starbucks established Sourcing coffee from various raw coffee beans producers in Asia, Africa, and Latin America where they have great relationships and established an efficient supply chain management system. Secondly, Operations – Starbucks owns operations in 60 countries and have stores. Thirdly, outbound logistics – Customers can buy Starbucks products from Company-operated and licensed stores in addition to online sales channel. Fourthly, Marketing and Sales – insignificant investment in marketing activities relied on the growing reputation quality and customer service. Fifthly, Service - Starbucks has a reputation for providing supreme level of customer services to their consumers Geereddy