STRATEGIC MANAGEMENT

COST & REVENUE DRIVERS

Factors WTP Volume Costly
Brand 7 7 9
Taste & Quality 7 6 6
Ambience 7 9 7
Food/Beverages 9 7 9
Supplier 5 5 5
Community 6 6 7
Customer Service 8 8 9
Store 7 2 10

DRIVERS OF ADVANTAGES

High

R Food & Beverages Stores

E Taste & Quality Customer Service
V
E
N
U
E Community
Supplier

Low

Cheap Expensive
Cost to Company (Starbucks)
DRIVERS OF SUSTAINED ADVANTAGES

High

R Food & Beverages Supplier

E Taste & Quality Community
V Brand
E
N
U
E Ambience Store
Customer Service
Low
Cheap Expensive
Cost to Company (Starbucks)

1. What is the strategy of Starbucks? And why it cannot be

replaced?
• Starbucks has remained in premium sectors, emphasizing retaining a small but
loyal customer base. Starbucks consumers have been loyal to the firm,
hence justifying the brand's high credibility. The firm places a premium on its unique
customer service and ambiance; both of these elements are simple to replicate but at a
considerable expense. Suppliers, community, and brand are winning elements for
Starbucks that are tough to reproduce. Taste, quality, and diversity are low-cost
characteristics that contribute significantly to income creation, offering long-term
competitive advantages.