III.

THE CORE COMPETENCES OF STARBUCKS

Starbuck’s brand equity is built on selling the finest quality coffee and related products, and by
providing each customer a unique “Starbucks Experience” through their core competences. In
this part, I will indicate and discuss the core competences of Starbucks and analyze that why
Starbuck always the best choice for all customers of all ages and has become a recognized and
most respected brand in the world.
1. Strategic Store Location:
Starbucks are not franchised, so even though it goes against the traditional mindset to
place the same stores so close together, it doesn't cause competition or reduce value with
Starbucks as all locations are owned by Starbucks. Another strategic idea behind these
multiple close locations is to keep that "close" feeling where people are familiar with one
another. Moreover, they target premium, high-traffic, high-visibility locations near a
variety of settings, including downtown and suburban retail centers, office buildings,
university campuses, and in select rural and off-highway locations across the world.
 The main aim of Starbuck is to make their stores a ‘third place’ besides home and
work for customer to have the best experience.
2. Tangible Resources (Coffee Beans):
Coffee beans play an important role in making a drink in Starbuck. They pay great
attention in checking the input source to bring the best drinks to customers. That is shown
by having sole ownership of Narino Supremo beans, which is considered to be one of the
highest quality coffee beans in the world. The core value of Starbucks is in the product.
Not only that, Starbucks also cares about each region and country to have a suitable
product launch strategy.
 The label researches deeply into each type of coffee bean, always innovating the
menu and keeping the coffees as the "key" to serve all the needs of customers.
3. Intangible Resources ( Have The Strong Brand Reputation And Receive A Large
Qunatity Of Loyalty Customers )
Starbuck is considered that it is the largest and best known of coffee house chains.