INTRODUCTION
Starbucks Corporation, an American company founded in 1971 in Seattle, WA. It is start just as a single store in Seattle’s historic Pike Place Market. Starbucks has about182, 000employees across 19,767 company operated and licensed stores in 62 countries. Their product mix includes roasted and handcrafted high-quality/ premium priced coffees, tea, a variety of fresh food items and other beverages. They also sell a variety of coffee and tea products and license their trademarks through other channels such as licensed stores, grocery and national foodservice accounts. Starbucks also markets its products mix with other brand names within its portfolio of companies, which include Teavana, Tazo, Seattle’s Best Coffee, Starbucks VIA, Starbucks Refreshers, Evolution Fresh, LaBoulange and Verismo. Starbucks had total revenue of $14.89 billion as of September 29th, 2013.
FOUR TEST OF COMPETITIVE RESOURCES POWER – VRIN [VALUABLE, RARE, INIMITIATABLE, NON-SUBSTITUTABLE]
The four test of the competitive power of a resources does the Starbucks pass is depend on the resources itself where resources is divided into tangible and intangible resources. Below is the explanation regarding to the Starbuck’s resources and which test is true for each resource.
1. Specialty Coffees , foods and beverages * Valuable: Starbucks offers lot of unique and satisfying coffee beverages that other competitors do not offer on a regular basis. Starbucks also includes nutritional information for these specialty coffees, foods and beverages on their menus in order to appeal to a variety of customers. Customers could check on calories, fat, carbohydrates, fiber and protein for each menu...
Looking for the answer to the question below related to Management?
The four tests of a resource’s competitive power are often referred to as the
Options:
A. the SCIR test, which asks if a resource is sustainable, competitive, internalized, and reproducible.
B. the competitive advantage sustainable method test.
C. the reliability resources simulation.
D. the VRIN test, which asks if a resource is valuable, rare, inimitable, and non-substitutable.
E. the organizational capability metric analysis.
The Correct Answer Is:
- D. the VRIN test, which asks if a resource is valuable, rare, inimitable, and non-substitutable.
Conclusion
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Related Posts
What are the four test questions that should be used to measure the competitive strength and power of a firm's resource and capabilities?
-Is the resource competitively valuable? -Is the resource rare? -Is the resource hard to copy[Inimitable]? -Is the resource invulnerable to the threat of substitutions from different types of resources and capabilities?
What are the four components of a sustained competitive advantage?
The idea here is that if a firm is to maintain sustainable competitive advantage, it must control a set of exploitable resources that have four critical characteristics. These resources must be [1] valuable, [2] rare, [3] imperfectly imitable [tough to imitate], and [4] nonsubstitutable.
What are competitive resources?
Resources that exist when competitors cannot find alternative ways to gain the benefits that a resource provides. A competitive advantage that will endure over time. Resources that can be readily seen, touched, and quantified, such as physical assets, property, plant, equipment, and cash.
What are the resources of source competitive advantage?
Resources and capabilities are the sources of competitive advantage in resource-based theory. 4 Competitive advantage occurs when a firm uses its resources and capacities to offer something new and valued that differentiates itself from competitors.