In contrast to Dunkin’ Donuts low cost strategy, Starbucks has focused on a differentiation strategy as a source of competitive advantage. Their strategy involves providing genuine service, an engaging atmosphere, and finely roasted coffee (Starbucks, 2016). They also focus on an ethical approach by using recyclable materials and conserving energy through water usage (Starbucks, 2016). These factors are important when building a customer loyalty that wants to support an ethical organization. Their continued growth is another source of competitive advantage. Starbucks is continually looking to expand internationally and by partnering with others that have similar strategies, they have been able to produce successful results overseas (Yardley, 2016).
Another source of competitive advantage for Starbucks is its employee benefits. These benefits include increased pay rates, rewards for ...
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...cation (Our Benefits, n.d.). Dunkin’ realizes, in order to engage their workforce and preserve employee satisfaction, they need to offer programs that match or surpass their competitors’. Therefore, they have developed many strategies to keep their employees returning.
For full-time Dunkin’ employees, within corporate headquarters, every Friday is an “early release Friday” (Our Benefits, n.d.). These employees can also take advantage of wellness programs such as an on-site fitness facility and gym membership discounts for employees who are required to travel. Corporate employees are also provided electric charging stations for their vehicles. This works to entice a more ecofriendly vehicle by reducing harmful emissions to the environment. Employees can also enjoy “baked goods, beverages and Baskin-Robbins ice cream at no charge while they work” (Our Benefits, n.d.).
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