Strategic Management Analysis: Starbucks Case Study on Capabilities

This case study delves into the strategic management of Starbucks, examining two key organizational capabilities: retail image and supply chain management. The analysis begins with an exploration of Starbucks' strong global brand recognition and aesthetic appeal, followed by an evaluation of its store locations and the temporary nature of competitive advantages related to these factors. The study then applies VRIO analysis to assess the value, rarity, imitability, and organizational aspects of these capabilities, revealing Starbucks' competitive advantages in the international market. The second part of the case study focuses on Starbucks' supply chain management, highlighting its high performance due to the implementation of information technology. Through VRIO analysis, the study concludes that Starbucks maintains a significant competitive edge in supply chain management, demonstrating value, rarity, and imitability within the global market. The analysis underscores Starbucks' superior position within the retail industry, emphasizing the company's ability to leverage both its brand image and supply chain efficiency for sustained success.

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Name of the Student
Name of the University
Author Note

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The given case study reveals that Starbucks, the coffee magnate that is internationally
active has a huge number of organizational capabilities. The following paper would attempt a
discussion on two such capabilities. The paper would open with the discussion and the VRIO
Analysis of the capability of the retail image as is demonstrated by Starbucks. The paper nears a
conclusion with the VRIO Analysis of the capability of the management of the supply chain as is
maintained by the organization in discussion, Starbucks.
Retail Image
The organization in discussion, Starbucks, is known to have a high global recognition in
terms of the brand value. The global recognition that is maintained by Starbucks is rare and is
very hard to imitate. The brand has a wide aesthetic appeal that is valuable and provides the
company with a high opportunity to maintain the aesthetic appeal in terms of the competitive
advantage of the company. The company has a wide range of store locations all over the world
(Kachra and Crossan 1997). However, the locations of the Starbucks stores can be imitated by
the competitors of the organization thereby leading to a temporary nature of the competitive
advantage in this regard.
The above analysis refers to the facts that the company in discussion, is at an
advantageous condition within the given international markets. The company is known to have
been demonstrating a high presence within the given international markets. The presence of the
given organization in the international markets help in the maintenance of the social
responsibility within the given international markets. The low imitability of the resources of the
organization helps in the development of the high competitive advantage within the given
markets wherein the concerned coffee organization has been active.

2STRATEGIC MANAGEMENT
Supply Chain Management
The company in discussion, Starbucks, is observed to have been demonstrating a high
competitive advantage in terms of the supply chain management. The company is known to
demonstrate a high performance in terms of the management of the supply chain within the given
organization (Kachra and Crossan 1997). The company is known to implement the proper
information technology within the operations of the organization which in turn leads to the high
competitive advantage as compared to the other companies operating in the similar industries.
The VRIO Analysis of the supply chain management of the international coffee retail
company reveals the fact that the company faces a higher competitive advantage within the given
international markets. The outcome of the analysis refers to the fact that the given organization
enjoys a high competitive advantage within the international markets. The company
demonstrates a high value and the rarity within the international markets which led to the high
nature of the competitive advantage as is required for the overall performance within the
international markets.
Thus, the above discussion states that the company enjoys a high competitive advantage
within the given international markets. The analysis revealed the fact that the company enjoys a
better position as compared to the other retail chains in the industry.

3STRATEGIC MANAGEMENT
References
Kachra, A. and Crossan, M.M., 1997. Starbucks. Richard Ivey School of Business, University of
Western Ontario.

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Appendix
Retail Image
Resources Value Rarity Imitability Opportunity Competitive
Implication
Global brand
recognition
 High
recognition
 Leveraging
of brand
equity
Yes Yes Yes Yes Competitive
Advantage
Aesthetic appeal
 Visual
appeal
 Starbucks
experience
 Familiarity
 Store design
Yes Yes Yes Yes Competitive
Advantage
Store Location
 Accessibility
Yes Yes No Yes Temporary
nature of the
competitive

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 Convincing
to clients
advantage.
Corporate Social
Responsibility
Image
 Community
friendly
 Building
goodwill
 Strong
initiatives of
social
responsibility
Yes Yes No Yes Temporary
nature of the
competitive
advantage.
Supply Chain Management
Resources Value Rarity Imitability Opportunity Competitive
Implication
Environmental factors
 Workplace
environment
 Support from
Yes Yes Yes Yes Competitive
Advantage

6STRATEGIC MANAGEMENT
government
 Overseas
aspects of
uncertainty
Informational
technology
 Communication
 Planning
Yes Yes Yes Yes Competitive
Advantage
Relationships within
the supply chain
 Suppliers
 Clientele
Yes Yes Yes Yes Competitive
Advantage
Value-added processes
 Flexibility
 Quality
 Production
system
Yes Yes Yes Yes Competitive
Advantage
Performance of supply
chain management
 Logistics
Yes Yes Yes Yes Competitive
Advantage

7STRATEGIC MANAGEMENT
 Supplier
markets
 Supplier
performance
 Material
sourcing
Business management
 Process
strategy
 Process
performance
 Marketing
strategy
 Innovation
Yes Yes Yes Yes Competitive
Advantage
Satisfaction of
customers
 Service to
customers
Yes Yes Yes Yes Competitive
Advantage