Illycaffe (B): The Starbucks Threat
Question 1
What are Starbucks CSAs and FSAs? How do these advantages explain the chain’s success in the United State?
Starbucks is origin from USA. Country specific advantages (CSAs) for USA are cowboy style. Whenever people think about American people usually will think about their cowboy style. This thing can be considered as their local culture that well known all around the world. Then, Hollywood industry that always had been followed by other nation in this world. Their lifestyle, fashion and actress activity would be preference for people who are really fanatic with their culture. Besides that, their military equipment and technology always make other nation worried and respect to this country. Lastly, coffee addicted among American people and society.
Starbucks firm specific (FSAs) advantages are location of their coffee house. Most of Starbucks coffee house are located in strategic area like urban area. This location has high traffic that can be easily reach and access by customer. Then, Starbucks offer high quality of facility and convenience to their customer. The ambience in the coffee house can make people relax and enjoy having a meeting and doing their work. Furthermore, the brand name of Starbucks itself is their FSA. When enter in the coffee house, we feel like in American style and perception that people that drink Starbucks coffee are wealth people.
The chain’s success of Starbucks for those advantages is because of the strong culture of drink coffee for American and Italian people. This culture gives an opportunity for Starbucks to increase their chain success. Then, convenience that they offer to their customer. Starbucks usually would be destination point for doing a meeting and doing homework. The ambience inside the coffee house really comfortable and encourage people to visit their shop. Besides that, location of the Starbucks coffee house really strategic that place in high traffic area.