The Competitive Advantage Of Starbucks

Starbucks Company has been declared the largest Coffee Company globally. The company has shown considerable growth in profit over the years, and the increase of profit is what has led to the question; what strategies have Starbucks put in place to gain a competitive advantage over the years? Looking at what the company is doing to gain competitive advantage; one will have to look at how the company is connecting with the customers, the products they provide and their marketing behavior.

Starbucks has over the years sought to create and strengthen long-lasting relationships with their clients. The company does not just aim at offering coffee alone to the customers but also making sure that the customers get a sense of homeliness with the business that the company terms as “Starbucks Experience.” The demonstration of the “Starbucks Experience” and feeling of homeliness is from the great ambiance designs that the company has in all its locations around the world. When dealing with customers, Starbucks Company has created a Starbucks Rewards Card for its clients who purchase products from them. The Rewards Card is one of the many things that the company uses to entice the customers to come back to them for purposes of making purchases. Through the Rewards Card, the company can build loyalty with the

Starbucks faces increased competition and pressure from its competitors, for instance, the McDonalds, Pete’s Coffee, Dunkin Brands, mom and pop specialty coffee stores, and the Costa Coffee stores. Dunkin Brands had proven to be the main competitor, especially in the US market by following Starbucks with a share of 24.6 1 %. Another challenge that the company is recently facing is the consumer changes on lifestyle choices and tastes. The change of users in the direction of healthier products has led to the coffee culture falling at risk for Starbucks coffee