1. How did Starbucks create its uniqueness in the first place?
Starbucks grew from a small business establishment to being one of the most successful Coffee Companies. It is the uniqueness of Starbucks that enabled it to be a successful company. This has created a sense of uniqueness among the customers. This is more surprising since the company hardly puts up billboards.
Its uniqueness is attached to its services and products. There is the concept of perfect coffee cup which has always maintained. The company has demonstrated that quality is the most important factor to win customers. The company is also known for designing another third place where people can check in after work; relax with friends in a welcoming and friendly atmosphere. This is a very crucial unique idea that the company developed so as to attract customers.
The company also explored the concept of customer satisfaction in order to be outstanding. It ensures the customers are satisfied by the “Starbucks coffee experience”. The company ensures that this experience is felt by the time a customer steps in its coffee store to the time of leaving .
The company also created a new concept of a community around its brand. This creates a unique feeling to its customers since they are allowed to share their Starbuck experience online with the entire community on the website .
The word of mouth strategy is one of the unique characters that the company adopted. This is a very difficult strategy for any business to adopt. In this strategy the company decided to adopt the word of mouth as a way of advertising. This has been a distinguishing character of this company with a policy that, “let the high quality of the products and services speak for themselves.” And it’s because of this strategy that has ensured its success .
2. Was Starbucks’s uniqueness a VRIO resource? Did it help Starbucks gain and sustain a competitive advantage? Why or why not?
a. The Value of the Uniqueness as Resource
The uniqueness of Starbucks is a strategy that was definitely thought through before it was decided upon. This is means that VRIO is a unique resource which the company uses to advance its business.
A VRIO is essentially is a large scheme of a firm, this strategy helps a company come up with a vision and mission, the objectives and strategic plans on both internal and corporate level. The adoption of VRIO is always for the purpose of giving it an advantage against other market players. The Company decided to fully implement the uniqueness in all spheres of its operations. This started from advertisement, marketing, quality and experience. This was and is surely is still one of the most valuable resource that the company.
b. How the Uniqueness helped Starbucks
The adoption of Starbucks unique strategy has surely proved to be its biggest asset and helped the company to transform from a small business in Seattle, Washington to the entire world. The company through the use of quality,...