3. Experimentation and Innovation
Starbucks is a disciplined innovator and good management of the company in its innovation timeline is one of the primary reasons behind the Company’s success in generating consistently high levels of same store sales. The Company’s ability to roll out new initiatives and products relatively quickly is a considerable competitive strength.
4. Command of Premium Brand
The customers are willing to pay higher prices for Starbucks’ coffee as they are not only buying a beverage, but also making a social statement at the same time (Hayes, 1999). They also are buying an experience, a lifestyle and an attitude for a good living life. Whilst these intangibles can be extremely difficult to measure, Starbuck’s customers are making the job easier by swarming in their thousands.
5. Financial Resources
Starbucks is the world’s number one specialty coffee retailer across the globe and as such it has a greater financial reach than practically all of it of market opportunities, investments and expansion activities that are not available to smaller firms with a reduced capital. Starbucks also use joint-venture, wholly-owned, and foreign direct investment instead of licensing and franchising to gain their profits for better financial of the company.