The internal environment of company is build up by organizational resources, capabilities and core-competencies. To create firm’s competitive advantage each company supposes to identify and determine the power of its resources and capabilities. Relationship between resources, capabilities, core-competencies and competitive advantage shows how their use can lead to strategic competitiveness of the company.
There are two types of resources: -tangible -intangible Tangible resources are assets, which can be observed and quantified. For Starbucks Corporation tangible resources are coffee beans, roasting coffee achines, store equipment. Starbucks is trying to use tangible resources to create competitive advantage for company. Intangible Starbucks Corporation resources coming from company’s over 40 years history very different for competitors to understand, analyze, imitate and substitute are employee’s skills, technology and reputation/value of company. Starbucks staff is well educated and motivated what is very important because development and increasing sale of company’s products depend on in front employees and their service what makes customers visits more frequent.
In company is very low staff turnover ratio. Starbucks capabilities are based on development and exchange information and knowledge of company’s employees. Starbucks treat their employees with respect and dignity. Senior leaders are ready to answer all new employees questions connected with activity of company. Top management are people experienced in managing and know-how to grow the company, to expand retail chain and have valuable vision of company’s development. In front staff is trained properly and they are people who are passionate, lovers of coffee and want to do something for them and others.
For years company built up its reputation as a leading roaster, retailer and brand of fine coffee. Starbucks Corporation products are superior quality and value to customers. In 1990 Starbucks developed geographic store expansion strategy opening new stores all over the world, which generated increasing revenues. It was connected with reputation of company which was known in regions before they opened the new stores. One of the last stores in 2012 company opened in Mumbai, India. In China and Pacific region they opened 3300 stores and plan to open even hundreds more by 2014.
Company’s stores in 60 countries welcome approximately 60 million visitors every week. For customers is very important high quality of products as well as high level of customer service. Starbucks stores are places where you can meet friends with music, free internet according to company’s goal should be “break from the worries outside-third place after home and work-place”. For valued customers company offers rewards “My Starbucks Card” connected with discounts, free drinks and mugs. Creating authentic connection with customers and communities whom they serve with roasting highest quality coffee is Starbucks core business.
The most advantage factor for Starbucks is expanding stores to big markets in Asia Pacific region what suppose to increase revenues of company. Very important factor is also staff of company, quality of selling products and excellent customer service. Starbucks is not using chemicals flavors for coffee and other beverages, as for example real hazelnuts for coffee could be attractive for customers preferring healthy living. Although strength of company is higher than weaknesses Starbucks management should focuses on changes to overcome weaknesses.