Essay on The Point Of Parity And Points Of Difference
Starbucks is an international coffee chain that sells a variety of coffee and espresso products and is one of the leading players in the hot drinks industry in North America. To set themselves apart from their competitors, they rely on three points of difference: desirability, differentiation, and deliverability.
Their most notable distinction is that they offer a variety of world-renowned products that can be personalized, a characteristic that customers can find relevant and important to them. They currently offer sixty-one products, which includes coffees, espresso beverages, teas, equipment, espresso machines, drinkware, and food (MarketLine, 2015a). This wide range of selection and personalized beverages makes them superior to their competition.
Another point of difference Starbucks relies on is differentiation. To stand out from its competition, Starbucks launched their own app that combines a rewards loyalty program, which can increase brand loyalty, as well as a feature that allows customers to pay for their items faster. In addition, Starbucks formed a partnership with Apple in late 2007, which allows them to offer exclusive music, movie, and app downloads for free for their in-store customers (MarketLine, 2015a). They also offer free, instant, and unlimited wifi to encourage customers to spend more time inside the store. Starbucks is able to set itself apart with these features that their competition is lacking.