Konsult Assignment-2
Question 1: Analyse the competitive advantage of Starbucks Coffee using VRIN Analysis
Answer 1:
Starbucks Coffee began operations in 1971 as a roaster and retailer of whole bean and ground coffee, tea and spices with
a single store in Seattle’s Pike Place Market. At present, they have over 30000 stores in over 80 countries. Starbucks went
public on June 26, 1992 at a price of $17 per share (or $0.53 per share, adjusted for subsequent stock splits) and closed
trading that first day at $21.50 per share. Starbucks Corporation's common stock is listed on NASDAQ, under the trading
symbol SBUX.
They offer coffee, handcrafted beverages, merchandize and fresh food. They offer whole bean and ground coffee along
with ready-to-drink options.
VRIN Analysis of Starbucks-
Resources and Capabilities of Starbucks Value Rare Costly to Non- Competitive
Corporation Imitate Substitutable Implication
Resource
Prime and Strategic Location Yes Yes No Yes Temporary
• In high-traffic, high-visibility locations near a Competitive
variety of settings, including downtown and Advantage
suburban retail centers, office buildings,
university campuses, and in select rural and
off-highway locations across the world.
• Tap into customers convince factor
Global Brand Recognition and Equity Yes Yes Yes Yes Competitive
• Starbucks is also the most recognized brand in Advantage
the coffeehouse segment and is ranked 60st in
the best global brands of 2018.
• Effectively leverages its rich brand equity by
merchandizing products, licensing its brand
Aesthetic Appeal and Concepts of its Yes Yes Yes Yes Competitive
Stores Advantage
• Their stores are visually appealing and have a
‘cool’ factor attached to them.
• Provide free Wi-Fi, great music, great service,
warm atmosphere and provide an environment
of community meeting spot, which forms a
wider part of the ‘Starbucks Experience’.
• Concept of the stores as being a ‘third place’
besides home and work.
• Designed to reflect the unique character of the
neighborhood they serve in and
environmentally friendly.
Large Size and Strong Global Presence Yes Yes Yes Yes Temporary
• 30,000 stores across 80 countries (as of June Competitive
30, 2019) Advantage
• Economies of scale through superior
distribution channels and supplier
relationships
• Lower input costs
Human Resource Management and Yes Yes Yes Yes Competitive
Company Culture Advantage
• Employees provided great benefits like stock
option, retirement accounts and well taken care
of
• Knowledge based employees creating a healthy
corporate culture
• Starbucks is regarded as one of the best firms to
work for.
• Great human capital management couple with
great corporate culture translates into supreme
customer service
Leveraging Technology and Mobile Yes Yes No Yes Temporary
Outlets Competitive
• Starbucks Apps on iOS and Android Advantage
• Investment in Technology
Customer Loyalty and Cult Status Yes Yes Yes Yes Competitive
• They have a cult following status among Advantage
consumers
• Loyalty-based programs like Starbucks
Rewards and Starbucks Card drive loyalty.
• Starbucks Card is a value card program that
provides convenience, support gifting, and
increases the frequency of store visits by
cardholders
Good Corporate Social Responsibility Yes Yes No Yes Temporary
Image Competitive
• Their stores are community friendly, focused Advantage
on recycling and reducing waste
• They build goodwill among communities they
operate in
• Strong Social Responsibility Initiatives
undertaken
Question 2: Guesstimate: Estimate the number of mobile phones sold every day in the city of Mumbai.
Answer 2:
Question 3: Develop a business model canvas for a firm mentioned in any article shared on Konsult
Facebook Page
Answer 3:
Business Model Canvas- Flipkart
Key Partners Key Activities Value Customer Customer
Propositions Relationships Segments
• Publishers and • Design, develop • Wide Selection • Reliance platform • Massive
Authors and Optimize • Exclusive • Customer support urban market
• Subsidiaries- • Manage the product service • Discount
Myntra, eBay, supply chain launches • Customer Lovers
eKart) network and • Unique Reviews • Book Lovers
• Walmart- owns seller’s network Features • Good deals and market
over 70% of • Partnership with • Convenience offers • Customers
Flipkart distributors • Cheap who prefer
• Sellers, Products and convenience
Manufacturers Key Resources Highly Trusted Channels and
and Distributors accessibility
• Venture capital • Flipkart official
of products. • Customer
partners website products
• Payment targeted
Partners • Huge Traffic • Seller Program
product
Flow • Software
• Payment System Applications
• Flipkart Smartbuy • Social Media
• Flipkart Channels
technological
aspects.
Cost Structure Revenue Streams
• Technology and Infrastructure Support Cost • Commission Structure
• Warehouse Management and Delivery Cost • Shopping Fees (Flipkart assured program)
• Advertising and Business Promotion Cost • Own shipping services - eKart
• Workforce Maintenance Cost
