Starbucks Analysis of Strategic Implications - Essay Example

Companies that intend to gain competitive advantage usually undertake a rigorous exercise of identifying their resources, capabilities, and competencies. After successful identification of all of these, the company ranks them to determine the most valuable resources as well as the distinctive competencies. The development of business strategies should focus on exploiting the available distinctive competencies and valuable resources. It is critical for companies to ensure that they exploit all the available resources and capabilities. The Starbucks Company is a leader in sourcing and roasting coffee, which forms its main product line. Without a doubt, the company has certain valuable resources as well as distinctive competencies that can define both its current and future strategies. This paper will discuss the strategic implications of Starbucks’ identified resources, capabilities, and competencies.

Starbucks’ Capabilities and Resources
The Starbucks Company has numerous resources that it can employ in an effort to gain a competitive advantage in the market. One of its leading resources is mainline of products recognized across the globe. Moreover, it has an outstanding reputation associated with the quality of its products and services. Starbucks also prides itself in having effective marketing and corporate social responsibility strategies. Over the years, Starbucks has had valuable human resources in the form of employees, partners, customers, and suppliers (Bingham & Eisenhardt 2008, p. 249). Some of its partners include Pepsi and Unilever. In addition, Starbucks has outstanding competencies such as marketing, making quality coffee, quality customer service, a high level of efficiency, employee motivation, and training employees.

Strategic Implications of Starbucks Resources and Capabilities
One of the outstanding strategies used by Starbucks currently is ensuring that it offers customers a unique atmosphere, which defines its brand. This strategy seeks to exploit the rare resource of an enduring reputation that Starbucks enjoys. Therefore, Starbucks uses its reputation to gain a sustained advantage in the market. In different stores across the globe, the Starbuck experience and atmosphere remain unique (Mooney 2007, p. 110). In addition, Starbuck exploits its valuable main line of products by creating a specific Starbucks coffee culture. The flavors and tastes of coffee available at Starbucks are rare and prove to be inimitable by other companies. In addition, Starbucks ventures into extensive research in an effort to develop new products that will promote its existing image of quality. For example, it launched instant coffee in 2009. More recently, Starbucks has introduced a diverse range of sandwiches and new items on the menu in an effort to ensure that it can serve people during lunch hour (Michelli 2007, p. 79).

Through the formation of partnerships with companies such as Pepsi and Unilever, Starbucks benefits immensely by reducing distribution costs. The company also has established training programs to ensure that its employees are motivated and empowered increasing their retention period. This ensures that the company can deliver quality services and products. Read More