A Resource Based Analysis of Starbucks
The current economic situation has required that organizations rethink the way that they do business. With people losing jobs and salaries being cut, people are spending money on essentials and opting less and less to spend on the extras. Groceries, rent, housing, transportation, education are of value while grooming, meals out, movies and cups of coffee or considered frivolous expenses. One organization that banks on Americans need to feed their self focused desires is Starbucks Coffee. Starbucks. Starbuck’s leadership, well aware of the effect that the crisis could have on the company, outlined a plan that included “increased store and operating efficiencies, additional cost reductions and …show more content…
A 16-oz. Grande latte has a robust 440 calories (about the same as two packages of M&M’s) and costs about $4.50 in New York City—or about three times as much as McDonald’s most expensive premium coffee. Starbucks Corp. describes its latest concoctions, which took 18 months to perfect, this way: “Topped with whipped cream and a dusting of toffee sprinkles, Starbucks’ version of this traditional delicacy is a luxurious tasty treat.” (app. 2-2)
Starbucks has consistently given consumers something new and exciting to look forward to in the world of coffee. These three core competencies are what have become the basis for long term competitive advantage for the company. These three have become the Starbucks distinctives.
The next step is to look at Starbucks tangible assets, intangible assets and organizational capabilities (p.171). The leadership of Starbucks has been wise in their decision to travel the world to find exclusive coffee beans and then purchase exclusive rights to many of those crops. There has also been a large move to expand Starbucks’ customer base. According to the Starbucks website, Starbucks introduced two types of mini-stores. The first was the store within a store meant for supermarkets and business lobbies (i.e. office buildings, hospitals, etc.) and the second was the self contained portable kiosk. These two innovative ways to make operating more efficient served to improve design models,