Competitive advantage for a business is defined based on some of the elements that might give the firm a better profit, tangible revenues or other forms of intangible profits compared to other firms. Businesses strategize in order to maximize their competitive advantage and also reduce the threats that they may face in a growing competitive world. Two types of competitive advantages have been described for firms which are that of cost advantage and differentiations. How the firms user their resources and capabilities to meet some of the key critical success factors will lead to a success in strategy or failure. While businesses do set themselves apart to gain competitive advantage it so happens that over time with change in consumer base or when the business considers local or international expansions, it might face challenges. The business will have to address these challenges in order to move forward successful and make their business sustainable. This report is about Starbucks, the coffee company. The report analyzes some of the concerns of Starbucks as noted in news media. An analysis of Starbucks strategies based on Fishbone, PEST, SWOT, Critical Success Factors, Market Segmentation and the VRIO are presented. These strategies highlight the significance of why Starbucks will have to address the problem and the opportunities that Starbucks can wield to address the problem. Hence based on the analysis recommendations are made for the contemporary concerns that are noted for the company.
Starbucks is an American coffee company. It s based out of Seattle in Washington which is also its place of inception. The Company is considered to be one of the largest coffeehouse companies internationally and has more 21,160 stores in around 63 countries. Starting in the year 1971, this is a company that was established as a roaster and retailer for coffee beans. At present it has more than 17,000 locations. The Seattle coffee bean company as of the years 1987 and 2007 expanded locally within the United States and established its first outside store in Canada and then in Tokyo.