Howard, please find my analysis of activities and capabilities/strengths Starbuck that imparts durable,

sustained and inimitable competitive advantage coffee industry, is:

Resources cannot be valuable unless transformed by unique activities and capabilities; same is true, holding
same valuable resources cannot result in any competitive advantage, employing the same activities and
capabilities like others.
Conclusively, not the resources, rather activities and capabilities a company engages in, result in the
competitive advantage, which is durable and sustainable for a long-term if it is inimitable.

Having said that, it becomes quite comprehensible, coffee beans being the primary resource in the value
chain of the industry participants, but the competitive advantage that Starbuck achieved engaging in value
creation strategy, employing its own unique activities and capabilities surpassing all other competitors, even
the largest close competitor is far too small. It will be worth analysing activities and capabilities it employs
to gain phenomenal success:

First of all, Starbucks value chain comprises of:

Sourcing coffee from diverse coffee beans producers with the efficient supply chain management system.
Operations Operation in 60 countries, modelled on company-operated stores and licensed stores.
Outbound logistics Most of its product mix are sold in-store and some through large box retailers.
Marketing and Sales Mainly on the growing reputation of premium quality product mix and superior
customer services to give the Starbucks Experience to drive customers to stores and products.
Service - Starbucks has a reputation for providing a supreme level of customer services to its consumers.
Let's explore its internal environment and see how the firm is able to exploit its unique (i.e. valuable, rare,
inimitable, non- substitutable) resources and capabilities in order to set the company apart from others.

Starbucks' product offering, including roasted and handcrafted high-quality premium priced coffees, tea,
other beverages and snacks, trademarks licenses such as licensed stores, grocery and national foodservice
accounts. Marketing products mix with other brand names is achieved in part through Starbucks' capability
of forming strategic supplier relationships.

Highest importance to the quality of its products and avoids standardization of its quality even for higher
production output.

Ethical sourcing, with its size and scale, despite power to take advantage of its suppliers, it maintains a fair
partnership status with its suppliers under its coffee and farmer equity (C.A.F.E) program.

The strategy of product differentiation by offering premium product mix of high-quality beverages and
snacks.

Visually appealing and a cool factor attached stores, reflecting the culture of the communities, targeting
premium, high-traffic, high-visibility locations in downtown and suburban retail centres, office buildings,
university campuses, and off-highway locations across the world.

Providing each customer with a unique Starbucks Experience, derived from supreme customer service.
Loyalty-based programs like Starbucks Rewards and Starbucks Card drive with a high degree of loyalty.
Starbucks brand equity is built on selling the finest quality coffee and related products, The most
recognized brand in the coffeehouse segment and is ranked 91st in the best global brands of 2013.
Effectively leverages its rich brand equity by merchandising products, licensing its brand.

Its stores are community friendly, focused on recycling and reducing waste. They build goodwill among
communities

Its other core competence is its human resource management, known for its high knowledge base
employees being the main assets of the company and they are provided with great benefits like a stock
option, retirement accounts and a healthy culture. This effective human capital management translates into
great customer services.

Efficiently leveraging technology with its mobile application Starbucks App in both apple and android
softwares. it makes significant investments in technology to support its growth every year.

Starbucks value-based approach for building very strong internal and external relationships with suppliers,
which drives the successful deployment of its business strategy of organic expansion into international
markets,

Horizontal integration through smart acquisitions and alliances that maintains its long-term strategic
objective being the most recognized and respected brands in the world.

What barriers to imitation (or replication) exist?

Lastly the relatively easy of entry into the market of new entrants to ensure that Starbucks competitive
advantage will be sustained in the long run, is countered by:
By large incumbent brands identities;
Favorable access to raw material with the relationship they build with its suppliers;
Larger scale and scope, yielding them a learning curve advantage;
Starbucks product quality;
Prime real estate locations, and its store ecosystem experience,
Achievement of economies of scale by lowering cost;
Improved efficiency with a huge market share;
Price competition.

The analysis provided above provides a greater competitive advantage to STARBUCK.