International Rivalry Analysis: Starbucks Vs Dunkin Donuts

Running head: BUSINESS MANAGEMENT
International Rivalry Analysis: Starbucks Vs Dunkin Donuts
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BUSINESS MANAGEMENTIntroduction
This report presents a comparative analytical discussion on the international business
rivalry. To analyze the business situation and performances, the resources and capabilities of two
businesses will be analyzed using VRIO framework and those will be compared. VRIO stands
for Valuable, Rare, Inimitable and Organization. VRIO analysis is an analytical tool that helps to
evaluate the resources of a firm and thus, it suggests the competitive advantage for the firm
(Knott, 2015). In the given report, the international business rivalry and competitive advantage of
Starbucks and Dunkin’ Donuts will be examined by using VRIO analysis framework.
Company information
Starbucks is an American coffee and Beverage Company and a coffeehouse chain that
operates across the world. It was established in Seattle in 1912 and currently has around 30000
stores around the world. The brand has always focused on product quality and customer service.
The primary business strategy of Starbucks is product differentiation. The company focused on
premium product quality, excellent customer service and ethics to establish the business
(starbucks.com, 2019).
Dunkin’ Donuts is another very popular coffee and baked products chain, which is a rival
of Starbucks. It is also a multinational coffee and baked food chain. However, the number of
stores is around 11000 across the world, which is quite less than Starbucks. This company also
focused on product differentiation as the major business strategy, and along with that, it also
focused on serving baked breakfast items. The brand offers good quality coffee products at lower
prices and offers very quick customer service (dunkindonuts.com, 2019).

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BUSINESS MANAGEMENTThe resources and capabilities of these two companies are analyzed and compared using
VRIO framework.
Starbucks: VRIO analysis
Resource/
capability
Valuable Rare Inimitable
and non-
substitutable
Organized Competitive
advantage
Strong
international
presence
Yes Yes Yes Yes Sustainable
comparative
advantage
Variety of
high quality
coffee
Yes No No Yes Realized
Temporary
competitive
advantage
Strong brand
image
Yes No Yes Yes Competitive
parity
Customer
service
Yes No No Yes Realized
Temporary
Comparative
parity
Store
atmosphere
Yes No No Yes Realized
Temporary
competitive