Ch.2 Strategic Planning for Competitive Advantage

Starbucks wants to distinguish themselves from other coffee houses presenting  their unique selling point which is the rich "experience" that goes beyond a cup of good coffee. Starbucks clearly positions themselves as an upsale brand that offers way more than just coffee. As the mission statement denoted, Starbucks is about the human connection. It targets students, workers, neighbors and all kinds of social classes to gather and have a cup of high quality coffee in a cozy and relaxing environment. Starbucks has left their business competitors way behind by identifying themselves as unique and valuable ( Product/service differentiation competitive advantage).

To provide the rich "experience" the marketing plan involves offering a place where customers like to get together other than their homes. Starbucks is taking care of that by supplying a inviting and comfortable ambiance with their comfortable furniture, relaxing music and other features such as free access to wireless internet, handicapped access, free books, etc. 

Additionally, Starbucks concentrates on strategy alternatives. The coffee house is always up to date by constantly creating seasonal custom-made beverages. It promotes prepaid and member cards called Duetto card and Gold card. They enlarge their line by selling their products to other grocery stores or restaurants. Also, the fact that Starbucks is the biggest coffee brand in the international market, benefits the company already in terms of competition.

The company has been able to convince their customers that Starbucks is more
than just coffee. Since the coffee house maintains a unique venue plus high quality products, it allows them to charge more for their products than their competitor such as Dunkin Donuts, MC Donald's, etc. for the same product. Therefore, Starbucks is known as a luxury coffee brand that gives many costumers a feeling of extravagance by simply holding a Starbucks cup.