As the company grew, it started to develop a very sophisticated location strategy. Detailed demographic analysis was used to identify the best locations for Starbuck’s stores.
The company expanded rapidly to capture as many premium locations as possible before imitators. Astounding many observers, Starbucks would even sometimes locate stores on opposite corners of the same busy street – so that it could capture traffic going different directions down the street.
2. Identify the resources, capabilities and distinctive competencies of Starbucks?
3. How do Starbucks’ resources, capabilities and distinctive competencies translate into superior financial performance?
4. Why do you think Starbucks’ prefers to own its own stores whenever possible?