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Essentials of Strategic Management: The Quest for Competitive Advantage 4th Edition by John Gamble, Arthur Thompson, Margaret Peteraf
Edition 4ISBN: 978-0078112898Essentials of Strategic Management: The Quest for Competitive Advantage 4th Edition by John Gamble, Arthur Thompson, Margaret Peteraf
Edition 4ISBN: 978-0078112898 Exercise 1
Based on your experiences as a coffee consumer, does Starbucks' strategy as described in Concepts & Connections 1.2 seem to set the company apart from rivals? Does the strategy seem to be keyed to a cost-based advantage, differentiating features, serving the unique needs of a niche, or some combination of these? What is there about Starbucks' strategy that can lead to sustainable competitive advantage?
Explanation
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A strategy can be defined as the method in which the company creates a value for its resources and offers high value for its customers. Strategy is the thing which keeps a company unique in the market from its competitors.
The strategies adopted by the company S seems to be apart from rivals. The company adopted the following strategies:
• The company treated each of its stores to make sure that they have elegant ambience which is pleasant to the customers.
• The product and store atmosphere has been designed such that they are consistent with each other.
• Apart from delivering quality products for the customers, the company also emphasised on corporate social responsibilities which became an advantage for the company.
• To increase the customer satisfaction, the company used quality products. It also shows that the company cares for their customers.
• It offers different products along with coffee like candies, CDs, juices, mugs etc. These products will create more interest in customers.
• The company operated stores in different locations with different sizes and arrangements in domestic and international countries. Through this expansion strategy, the company was able to reach more customers.
Company S adopted the differentiation strategy of competitive advantage. A differentiation strategy can be defined as the strategy in which the company sets it products unique from its competitors.
The differentiation strategy of the competitive advantage followed by the company can be described as follows:
• High quality of raw material was used to differentiate the product from competitors.
• The company also maintained relations with its customer by offering them better experiences over the coffee.
• Increased its product categories by introducing refresh products.
• It also involved in social responsibility which ensures its long term success.
However, the company partially adopted the niche strategy too by establishing the stores in highly visible and high traffic areas.
The strategies adopted by the company S seems to be apart from rivals. The company adopted the following strategies:
• The company treated each of its stores to make sure that they have elegant ambience which is pleasant to the customers.
• The product and store atmosphere has been designed such that they are consistent with each other.
• Apart from delivering quality products for the customers, the company also emphasised on corporate social responsibilities which became an advantage for the company.
• To increase the customer satisfaction, the company used quality products. It also shows that the company cares for their customers.
• It offers different products along with coffee like candies, CDs, juices, mugs etc. These products will create more interest in customers.
• The company operated stores in different locations with different sizes and arrangements in domestic and international countries. Through this expansion strategy, the company was able to reach more customers.
Company S adopted the differentiation strategy of competitive advantage. A differentiation strategy can be defined as the strategy in which the company sets it products unique from its competitors.
The differentiation strategy of the competitive advantage followed by the company can be described as follows:
• High quality of raw material was used to differentiate the product from competitors.
• The company also maintained relations with its customer by offering them better experiences over the coffee.
• Increased its product categories by introducing refresh products.
• It also involved in social responsibility which ensures its long term success.
However, the company partially adopted the niche strategy too by establishing the stores in highly visible and high traffic areas.
Essentials of Strategic Management: The Quest for Competitive Advantage 4th Edition by John Gamble, Arthur Thompson, Margaret Peteraf
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