Reference no: EM131476210

Starbucks adopts a differentiation strategy suggests to build business around establishing product uniqueness or differentiated qualities to gain competitive advantage based on features of its offerings in coffee business. As a coffee consumer, the strategy being followed by Starbucks does set them apart from its rivals. The company follows a distinct generic strategy and the focus is to provide specialty coffee products and enhanced customer experience to its customers. Thus, the strategy is keyed on serving the unique needs of a niche. For instance, while following the differentiation generic strategy, Starbucks uses a responsible material sourcing policy to differentiate its offerings and cater to the niche requirements of the customers. The aim is to use the finest ingredients to provide specialty coffee products. Also, the organization does a conscious differentiation by positioning its coffee promoting it as premium product in the market, thus effectively doing brand differentiation. It has achieved a lasting brand loyalty of its customers that makes it difficult for others to imitate by merely copying its strategic approach. Moreover, the well appealing ambiance makes it stand out among other rivals selling coffee in the ready-to-drink coffee industry. This enables Starbucks to have a sustainable competitive advantage.

Question-

This hits on a good point, the “in the ready-to-drink coffee” Starbucks can say the coffee is brewed right there for you, made the way you want it, different strengths, different flavors, putting in whatever you want for extras. Would you agree this is a focused and deliberate part of their strategy as well to be able to boast they are much more personable than other places. (Okay other than mom and pop coffee houses in older neighborhoods.)?