Starbucks use licensing way to enter the Middle East because with this mode it allow Starbucks to minimize capital outlays for marketing research and decrease local market expertise. Note: Supply chain management has helped it manage the costs of raw materials. Good salaries and a creative work environment help at maximizing employee satisfaction. Faithful consumers can feel like they belong to an exclusive club, that consistently fights for social justice and equality, as seen in its commitment to fair trade and ethical sourcing. Brand image has played an important role in the profitable growth of Starbucks. • Balance protection for your Starbucks Card if it is lost or stolen. High level customer loyalty means higher profitability and revenue. They want to directly communicate with their consumers and make long term relationships. So, Starbucks’ positioning strategy was ‘Authentic Coffee, Great Experience and Quicker Delivery’. They believe that franchises mean that there will be a middleman in between them and their consumers and they do not want that. All these strategies show that Starbucks mainly focuses on following a consumer-based strategy, delivering consumer needs and having direct contact with consumers, and gaining direct feedback for further development. Another factor is their product innovation, they have been able to introduce new products almost every season and these products or flavors have always been very peculiar with respect to other competitors. In USA alone, it has 14,000 retail stores. There are 29,324  Starbucks stores open worldwide. Since its establishment, many other coffeehouses have entered the industry and tried to compete with Starbucks. Customers keep coming back because the experience is always fresh. Its strong image is also a result of its focus on quality and customer service. Starbucks has maintained competitive advantage over the competition throughout its existence. It has managed every aspect of the Starbucks experience to offer each customer a fulfilling experience. Starbucks has managed good relationships with its suppliers. The competitive advantage that one firm has today can be wiped out or be made obsolete by the new innovation of the competitors. About Us. Moreover, while other fast food chains have mainly focused on increasing their franchises around the world, Starbucks does not believe in franchising and only operated through company operated stores. Today, it is a leading global brand of coffee. We make sure everything we do honors that connection – from our commitment to the highest quality coffee in the world, to the way we engage with our customers and communities to do business responsibly.” This is how Starbucks explain their relationship with their consumers and this makes them different from other competitors. Howard Schultz  is considered a visionary leader. There is competition in the industry. New ideas. and snacks. Starbucks® India Mobile app. 3. International market expansion with the focus on emerging economies is one of the key elements of Starbucks Why They Go International? A large and differentiated product range is also a source of strong competitive advantage. Starbucks Is Maintaining Its Competitive Edge. The company has also managed a balanced mix of company owned and licensed retail stores. Human resources are among the most critical assets of a company. Starbucks has several important strengths. Higher variety has led to higher popularity. Retrieved December 20, 2017, from https://www.forbes.com/sites/greatspeculations/2016/10/13/how-is-starbucks-maintaining-its-competitive-edge/#5ac18f5b759c, Designed by Elegant Themes | Powered by WordPress, Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), https://www.starbucks.com/about-us/company-information, https://www.forbes.com/sites/greatspeculations/2016/10/13/how-is-starbucks-maintaining-its-competitive-edge/#5ac18f5b759c. It is a famous coffee brand which operates in 98 countries. It is a result of its focus on quality and customer service. The focus is on keeping them happy and satisfied so that they can offer the best service to customers. Growth of its international network has also strengthened the brand’s advantage over rivals. From Microsoft to Apple, Google and all the most successful brands in the 21st century, each is successful because of its leadership. At participating stores. “It is just a moment in time – just one hand reaching over the counter to present a cup to another outstretched hand. It has managed a balanced mix of company owned and licensed retail stores. It focuses instead on quality in other aspects of business including products, customer service and supply chain. There are 14,606 Starbucks retail stores in US and 17,454 in the entire Americas. Their strategies are rare, valuable, and non-substitutable. Starbucks can obtain a competitive advantage by implementing value-creating strategies, not simultaneously being implemented by any current competitor. Starbucks is also known for its focus on  customer service. Every customer can have a fulfilling experience and can find his choice from the large range Starbucks offers. Case Study : Cafe Coffee Day Essay 1814 Words | 8 Pages. Customer loyalty: Starbucks also enjoys very high level of customer loyalty. 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