Question

What competitive advantages do you believe Starbucks seeks to establish? What are the main challenges the firm faces as it tries to maintain the advantage or advantages you identified?

Answer 1

Answer - The starbucks works with the policy of people first , profit last . Hence it provides the quality services , with good ambience and quality coffee. This gives it upperhand over the competitors. Also due to the excellent product differentiation starbucks is able to gain the comparitive advantage over the competitors.

It faces the main competition from the Companies like Cafe Coffee Day and Mc Donalds which also offer the quality services and sell the many kind of differentited products. These competitors also sell mainly the same product lines which the starbucks sell and hence are the biggest competitors of starbucks.