The Competitive Advantage Of Starbucks Essay

1104 Words Oct 9th, 2015 5 Pages
The Competitive Advantage of Starbucks To become a successful company and to survive long-term in the industry, the company must create a competitive advantage, which means the company has to have a greater profitability than its rivals or the average profitability of the industry. According to the textbook, Essentials of Strategic Management, the value creations of products, lower costs, and establishing differentiation are main sources of competitive advantage. In addition, the company must have four factors to build competitive advantage; those building blocks of competitive advantages are efficiency, quality, innovation, and customer responsiveness (Hill, p87). This paper will analyze the competitive advantage of Starbucks focusing on sources of competitive advantage and the building blocks of competitive advantage and identify what distinctive competences Starbucks uses. It will then to respond the offer from McDonald’s that wants to serve Starbucks coffee.
The Building Blocks of Competitive Advantage Starbucks Supply Chain Operation (SCO) provides customers right time and right amount of coffee by having skills of accurate sales forecasting and establishing efficient distribution systems. SCO eliminates redundancy and maximizes efficiency. The human resources of Starbucks also contribute to accomplishment of efficiency. Starbucks baristas receive training to gain skills of making exactly the type of drink the customer requested in effective way. SCO and human…

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