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Starbucks Core Competencies Case Study Group 4

Starbucks' core competencies include superior quality, excellent customer service, commitment to corporate social responsibility, global expansion through menu diversification, creating a premium third place experience, and innovation. However, as Starbucks has grown, some core competencies have been damaged. Expanding the menu and introducing drive-thrus have diluted the unique in-store experience. Menu diversification has increased complexity and competition. Digital initiatives like mobile ordering have improved customer experience but also caused store congestion impacting the in-store experience. Maintaining core competencies while continuing to grow and diversify is a challenge.

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472 views2 pages

Starbucks Core Competencies Case Study Group 4

Starbucks' core competencies include superior quality, excellent customer service, commitment to corporate social responsibility, global expansion through menu diversification, creating a premium third place experience, and innovation. However, as Starbucks has grown, some core competencies have been damaged. Expanding the menu and introducing drive-thrus have diluted the unique in-store experience. Menu diversification has increased complexity and competition. Digital initiatives like mobile ordering have improved customer experience but also caused store congestion impacting the in-store experience. Maintaining core competencies while continuing to grow and diversify is a challenge.

Uploaded by

ssb
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Starbucks Case Study: Core Competencies & Damage to core

competencies(Group 4)
Core Competencies in Starbucks Case
Superior Quality: Starbucks has long been known for excellence in its products. Through
sourcing only the finest coffee beans from various corners of the globe and following
rigorous standards in its roasting procedures, the company upholds its promise of quality.
Not limited to just its beverages, this dedication to excellence also extends to the food
options available at Starbucks. By making quality a top priority, Starbucks guarantees a
consistently exceptional taste and satisfaction for its customers at all of its locations
worldwide.
Customer Service: For Starbucks, customer service is a top priority. The company focuses on
equipping their baristas not only with coffee-making skills, but also with the ability to
engage and serve customers. Starbucks baristas are renowned for elevating the customer
experience to new heights.
Corporate Social Responsibility (CSR): Starbucks is firmly committed to corporate social
responsibility. By implementing Coffee and Farmer Equity (C.A.F.E.) policies, the company
guarantees that the coffee it sources is ethically obtained and that farmers receive fair
compensation. Additionally, Starbucks funds farmer support centers, which give coffee
growers access to information and training. Furthermore, the organization is dedicated to
mitigating its ecological footprint via diverse sustainability endeavors. Customers that
respect moral and environmentally friendly business operations are drawn to Starbucks
because of its dedication to corporate social responsibility (CSR).
Global expansion & Menu Diversification: The company had successfully entered numerous
markets around the world, adapting its offerings and store formats to cater to local tastes
and preferences.Starbucks has continually expanded its menu beyond its core coffee
offerings. This includes a variety of food items such as sandwiches, salads, pastries, and
more recently, even wine and beer in some locations. The company has also introduced a
range of non-coffee beverages like teas, smoothies, and specialty drinks. This diversification
allows Starbucks to cater to a wider range of customer tastes and preferences, attract non-
coffee drinkers, and increase sales throughout the day by offering lunch and evening
options.
Premium Experience: Starbucks is all about the whole coffee experience, not just the coffee
itself. The business has developed a distinctive "third-place" experience—a location halfway
between home and work, where clients may unwind, sip coffee, and even take use of
complimentary Wi-Fi.
Innovation: Starbucks has demonstrated a remarkable ability to innovate in digital customer
engagement techniques, store designs, and product offerings. The business was among the
first in its sector to provide a mobile app for ordering and payment, and it keeps launching
new goods to meet the needs of its evolving clientele.
All these factors are the core competencies of Starbucks according to the case.
Damage to Core Competencies in the Starbucks Case

Dilution of Customer Experience: As Starbucks expanded, there was a risk that the unique
customer experience that set the company apart could be diluted. The introduction of drive-
throughs and an expanded food menu, while increasing accessibility and offering more
choices to customers, could potentially undermine the “third-place” experience that is
central to the Starbucks brand.

Menu Diversification: Menu diversification can damage core competencies as it can


complicate operations and potentially slow down service. There’s also a risk that it could
dilute Starbucks’ brand as a premium coffee seller. Moreover expanding its food offerings,
makes it vulnerable to increased competition from established players in the fast-food and
fast-casual dining sectors. Thus menu diversification has both pros as well as cons.

Digital Engagement Challenges: Digital initiatives have undoubtedly enhanced both the
customer experience and operational efficiency. However, they also come with certain risks.
Take, for instance, the mobile order and pay system, which has caused congestion in stores,
impacting the overall experience for customers. Striking a balance between digital
advancement and ensuring a top-notch in-store experience is a major challenge to
overcoming damage to digital core competencies.

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