Starbucks has various competitive advantages. Firstly, it is famous for premium coffee rated as high quality. This recognition comes from Starbucks’ ability to source its coffee from reliable suppliers that work under a strong code of quality and ethics (Harnrungchalotorn & Phayonlerd, 2013). Secondly, Starbucks’ financial position allows it to stay ahead in terms of technology, expansion, talent, and economies of scale (Trefis Team, 2016). Smaller players in the industry have not been able to achieve these objectives easily. Thirdly, Starbucks’ presence in more than 90 countries around the world gives it a larger market share. Harnrungchalotorn and Phayonlerd (2013) note that expansion has been steadily slow because the coffee culture differs from one country to another.
Starbucks sustains its competitive advantages constantly because customers have faith in the services offered. In essence, the company capitalizes on customer loyalty to sustain its market share, growth, and profitability. Quality audits at Starbuck shops ensure that standards are constantly high. As Forbes’ Trefis Team (2016) points out, nearly all first time customers choose to stick to Starbucks because they find no better alternatives. This trend implies that Starbuck’s competitive strength can never be for a limited duration.
Starbucks prevents the erosion of its competitive strength in two major ways. Firstly, the company commits to high quality standards of its coffee and outlet performances. Suppliers deliver the finest all through the year while restaurants use the best technology and skills to prepare coffee (Trefis Team, 2016). Secondly, NACS (2016) notes that Starbuck’s employees are partners that draw unrivaled benefits packages. The continual motivation of staffs ensures sustained high standards at every Starbucks outlet.