Starbuck - Ressources & Capabilities

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Human Resources:

Their human resource is quite profitable. Indeed, Starbuck, when considering its employees, and implementing compensation policies, adopts an innovative approach to the industry. This has a direct impact on the efficiency of each employee and promotes team motivation and profitability.

Starbuck's Human Resources are quite rare because customer experience becomes a strategic lever for the majority of the industry circle, requiring a certain investment. Starbuck also offers its employees training in service and in the transmission of the company's values.

Their human resources are nevertheless imitable because, beyond the cost involved in training, each industry player can train its teams to adopt the brand's values and reuse them in their daily work.

Physical Resources:

Extremely valuable thanks to the willingness to install blinds at strategic locations such as two blinds at opposite corners of the same crossroads. This allows you to have a maximum of traffic regardless of the problems in the area. (Traffic jams, rush hour...) In addition, the number of stores being very large (30,000 worldwide) and the location of the strategic store, allow them to have a significant added value.

Moreover, this is rare, as competitors do not have as strong an international presence as Starbucks. Competitors are only located in certain regions that are more accessible to this circle of industries.  

Starbuck is difficult to imitate in the short and medium term given its global and sprawling deployment. However, in the long term, competitors are likely to increase their presence across the globe by using the franchise system unlike starbuck which is in the will to own each of their stores.

Finally, the cost structure imposed by Starbuck does not facilitate the imitation of the concept.

Reputational Resources:

Starbuck's reputation is very profitable because they have introduced a new concept "the third place", characterized as a place between Home and Work. This makes it possible to acquire a new more premium clientele, attracted by the product and the Starbuck experience, whose motto is to sell more than just coffee. Starbuck's reputation is very profitable because they have introduced a new concept "the third place", characterized as a place between Home and Work. This makes it possible to attract a new, more premium clientele, attracted by the product and the Starbuck experience, whose motto is to sell more than just coffee.

Moreover, this reputation is all the more profitable because Starbuck wants to ensure that each customer has their own brand specific atmosphere of fear no matter where they are.

The reputation of the brand remains rare to obtain because Starbuck has been established for several decades, thus allowing on the one hand to establish a feeling of trust with its consumers while having an impact on their preferences.

Finally, a reputation is difficult to imitate in the short and medium term by definition, since the latter is acquired in the long term.  This allows for clear consumer identification and makes it more difficult for competitors to penetrate the market.

Financial Resources:

Their financial resource is profitable because it has allowed them to obtain a 25.5% return on capital investment. This has allowed them to generate strong cash flow, an intrinsic condition for their international deployment. This allows them to develop quickly while maximizing their profit.

Their financial resource remains scarce although it is not difficult to reach. Starbuck is characterized by aggressive expansion with comparable dirty blinds ensuring continuity in profitability and grabbing market share.

In addition, through their power, they make powerful alliances such as Nestlé allowing them to optimize their profit over their entire business.

Development Strategy Capabilities:

Valuable why?

Starbucks has a very sophisticated strategy concerning the location of its stores, thanks to a detailed demographic analysis. It uses geostrategy to target the right place to implement their stores. For example, in the late ‘80s and early ’90s, Starbucks pursued a strategy of aggressive expansion.

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