Question

How did Starbucks develop a sustainable competitive advantage in the specialty coffee market? Please provide any...

How did Starbucks develop a sustainable competitive advantage in the specialty coffee market? Please provide any external references please.

Thank you!

Homework Answers

Answer #1

Starbucks have developed a sustainable competitive advantage in the specialty coffee market in a following way:

  • Customer Experience: Starbucks works to develop connected customer experience in order to create long-term relationship with customers and maintain customers for lifetime.
  • Finest coffee beans: Starbucks uses best beans to make their coffee and travel throughout the world to find suppliers who can deliver beans according to their standards.
  • Mastrena Espresso Machine: They brewed their coffee by using Mastrena Espresso machine. Customer always receive the same taste no matter where they are around the globe.
  • Porter's Generic strategies: The company follows the Porter's strategies that includes three strategies and they are differentiation, focus and cost leadership.
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