Coffee and Distinctive Competencies

Starbucks, the ubiquitous coffee retailer earned high profit and is forecasted to grow. The resources and capabilities that have provided Starbuck distinctive competencies are its unique business model of making the store as a third place between home and work, its ability to own its own stores throughout the world, a strong brand name, decision making based on the ideas provided by employees, for which Starbuck started selling experience through selling ‘third place’, superior customer services, hiring and training process for employees, progressive compensation policy even to the part time employees like stock option plan grants and medical benefits which was unique in the industry, retaining its customer at higher rate. Starbucks’ these distinctive competencies helped it to differentiate its products from those of rivals and thus achieve higher profitability.

Competition
• Starbucks - 12,000
• Caribou Coffee – 539
• Tim Horton 's - 292
• Coffee Bean & Tea Leaf - 213
• Peet 's Coffee – 193
• Seattle 's Best - 160 (which happens to be a subsidiary of Starbucks!)
• Dunn Bros. Coffee -156
• Coffee Beanery - 150
• Biggby Coffee - 120
• Tully 's – 100

Dunkin Donuts
Type: Donut & Coffee Retailer
Locations
US: 7,015 Stores, 36 States
International: 3,068 Stores, 32 Countries
Cups: 4M per day
Revenue 628.2M

Mcdonalds
Type: Fast Food Chain
Locations
US:14,000+
International: 19,000+, 119 Countries
Cups: 2.7 M
Revenue: 27 B

Starbucks
Type: Coffee Retailer
Locations
US: 12,000
International: 5,000 Stores, 60 Countries
Cups: 13 M
Revenue: 13.3 B

Starbucks Financials 2011
• global revenues reached a record $13.3 billion, a 14 percent increase,
• operating income was $2 billion, a 16 percent increase from last year.
• earnings-per-share growth continued, up 10 percent in 2012 to $1.79 from last year’s $1.62.
• Through share repurchases and dividends, we returned approximately $1.1 billion to shareholders.
Stores Revenue