Case study (Starbucks) Example | Topics and Well Written Essays - 1000 words

(Starbucks) - grounds Study ExampleThis strategy creates new business opportunity for Starbucks. By increasing the efficiency of the baristas in terms of delivering the order of its valued customers within the shortest period of time possible and maintaining the cleanliness and friendliness of the staff who ar working within Starbucks coffee shops also creates competitive advantage for the fellowship.Almost a decade ago, Starbucks has been focussed on saturating the domestic market in the U.S. Since the company has already saturated the U.S. market, Starbucks began expanding its business within the globular markets. Since anybody can easily establish their own coffee shop, competition within the coffee industry is really tight.As explained by Porter (1998, p. 1), competitive advantage is referring to the search for a favorcapable competitive point within a particular industry. Using the four major assumptions we have mentioned earlier, Starbucks management was able to successfu lly develop a competitive advantage in terms of improving the quality of serve the company has been extending to its valued customers.There is a very tight market competition with regards to domestic and global markets of coffee products. In line with this, rivalry within the coffee industry is tight due to the circumstance that the capital requirements in putting up a coffee shop are not so expensive. This makes barriers to entry within the local and international coffee industry low. Since anybody can easily sell brewed coffee, the panic for substitute products is very high.Improving Starbucks services increases its market share within the coffee industry. Therefore, the company has gained more power over its suppliers. Since the company is able to leveraging its raw materials by bulk, Starbucks is able to purchase its raw materials at a relatively low price. Considering that there are a lot of lively coffee shops around