Yes, Starbucks have sustainable
competitive advantage, let me describes their strength to explain
out their competitive advantages, these are as stated below:
- Starbucks have strong brand image,
according to Interbrand ranking data, they have strong brand value
of around USD 12 Billion
- They have created strong financial
position in the market; they are considered as profit making
organization and performed excellence in the foods and beverage
industry.
- They have increased their
capacities over time and they could store many items and input
materials in their stores
- They have built extensive supply chain networks across various
countries.
- Sustainability comes with how they treat and retain their
employees and staffs, here; this organization has maintained good
track reports in such area.
- They respect anti-discrimination in the workplace; they act as
equal opportunity employer. They have also brought moderate
diversification in their business processes and operations.
- Quality, taste of products with improved service level could
also depict sustainable competitive advantage.
Now let me describe its weaknesses, these are as stated
below:
- They charge higher prices to their customers, so not all
customers can afford such pricing.
- There are similar products as available in the market with
comparatively at low pricing offer.
They are also charged with several disputes or controversies
like UK Tax avoidance dispute, unfair practices with Coffee
suppliers.