P3-3: What competitive advantages do you think Starbucks has?

What will it have to do

to maintain those advantages? (Hien)  
Definition of Competitive Advantage: What sets an organization apart; its distinctive edge.
(Management Textbook) In other words, a factor that allows an organization to outperform its
competitors in a particular field.

According to the textbook, Starbuck was voted the most dynamic brand in the previous two
decades. So what is the reason why Starbuck has been called like that ? Because they have a
large amount of features that other competitors don’t. 
Competitive advantage:
 Ambiance:
Starbucks is a premium coffee brand. Its pricing strategy is also a key strength. Despite the high
price, most customers are willing to pay the premium prices it charges because of its focus on
quality and customer service. According to Harvard business school, purchasing a cup of coffee
became an “affordable luxury” and an experience in itself. And customers were able to order
customized drinks and enjoy the beverage in a relaxed, upscale environment. Besides that,
Starbucks is known for its great ambiance, including comfortable chairs, music, fragrances, and
the hissing steam from the espresso machine. Starbucks has grown more valuable than ever
before as a result of all of these factors. According to Linkedin, Starbuck stores are effectively
positioned as a “third place” away from home and work, where people can spend time in a
relaxed and comfortable environment with their friends or alone.
 Starbuck reward program:
- An essential feature that distinguishes Starbucks from competitors is that they launched the
Starbucks’ loyalty program for customers according to the textbook. It has managed every
aspect of the Starbucks experience to offer each customer a fulfilling experience. For example,
this program allows customers to make payments, collect their beverages and redeem rewards
via the mobile app without the torture of queuing or enduring indecisive fellow customers (mà
không phải chịu sự tra tấn của việc xếp hàng hay chịu đựng những khách hàng thiếu quyết
đoán). Research by Manifest revealed that of all mobile users who regularly use restaurant
loyalty apps, nearly half of them (48%) use Starbucks Rewards. Furthermore, in 2011,
Starbucks launched the Starbucks Card mobile app, enabling mobile payment and by 2019,
71% of Starbucks app users were visiting a store at least once a week, according to Numerator
- a market intelligence and consumer insights provider. 
 Keep up with trends:
- The company knows that they have regular customers, but with them coming out with
seasonal drinks attracts people to come and try their “drink of the season”. In each special
occasion of the year, Starbucks always introduces to customers new products which will
stimulate preferences and avoid the boredom of customers. Moreover, the baristas in Starbucks
can customize any drink you want. According to Business Insider, Starbucks owns at least
17,000 recipes all over the world. 
Maintain:  
According to Michael Porter, the general strategies can be used to achieve a sustained
competitive advantage is differentiation 
 Starbucks has maintained a competitive advantage through its differentiation strategy of
being a premium and distinctive coffee consumption supplier.
 Differentiation is defined as delivering high-quality products or services that are viewed
as unique and valuable by customers. Starbucks' approach for gaining a long-term
competitive advantage is around product differentiation.
 Starbucks distinguishes itself by providing a superior customer experience and high-
quality coffee. Starbucks achieves the “Starbucks Experience” through well-designed
stores with a pleasant ambiance and well-trained employees. According to research
performed by the Daily Mail, Starbucks stores had a more welcoming décor and nicer
baristas than independent coffee shops.