Starbucks’ business growth is not attributed only to its storefront but is an outcome of several factors. Synergistic action of strategy, business model, innovation, and adaptation help the brand stand out amongst its peers.

With its collaborator TATA in India, Starbucks provides the consumer with a five-star hotel experience. In Singapore, the coffee and the food are of consistent quality. In America, efficiency and consistency have led the company to stand out.

A brand like Starbucks’ business growth is aided by its ability to adapt to a country and region’s local tastes and preferences. While doing so, at the core, the company sticks to its core strengths. Its strength lies in its value chain. The value chain includes all the backend support systems critical to the company successfully maintaining a competitive advantage over its peers.

The customer only sees the storefront and the service delivery processes. The storefront requires the support of a host of other support segments like food, consumables, beverages, advertising, marketing, financing, accounting, supply systems, logistics, human resources, storefront designing, uniforms and branding, cleaning, and more.

The brand has built and perfected its business processes and the relationships between the business processes through hard work, innovation, and technology support. Compare the value chain I have just described with their closest competitors. You will observe that the Starbucks value chain and delivery processes give the brand its competitive edge.

The brand also continues to outperform competitors because it focuses on customer experience and satisfaction. Look closely at the changes and innovations it continues to make to meet evolving customer preferences. It is not about it just being a coffee brand; it is much more.

Competitive advantage is secured with a combination of strategy, business model innovation, marketing, advertising, and branding supported by technology. It is the outcome of all these elements coming together to delight its customers.

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Sudhirahluwalia, Inc