Why has Starbucks been so successful?

Why has Starbucks been so successful? Who are their competitors? What is their competitive advantage? How would you rate Howard Schultz as a strategic leader?

Starbucks has been successful with their business model due to their meticulous attention to detail for the customer and the ambiance of the customer experience as it relates to specialty coffee. I agree with the case on the merits that Starbucks is chic and luxuriously attainable. It’s cool to be seen these days with a Starbucks logo as it is with bearing the “Apple” logo. The Starbucks brand has a upper-class or educated appeal which is available to the average customer by simply purchasing a cup of coffee, tea, or other specialty drink.

As I’m writing this though, I’m sitting in a Panera Bread, listening to my iPod and sipping a Chai Tea Latte that went divinely well with my gourmet chocolate chip cookie. Panera Bread, is one of many competitors to Starbucks now that specialty coffee is mainstream. There are even latte creamers to lure in the buyer whom is a bit cost conscience. You can even get a specialty cup at the gas station these days.

Starbucks competitive advantage is still by far their international brand image and the experience that they bring to each visit. Although I love the experience at Panera Bread more than Starbucks because the colors are warmer and the wireless internet is wonderful.

As for Howard Schultz, I would give me a 6 on the scale of 10. He has done a tremendous job as an entrepreneurial visionary and sought to put intelligent people around him to build Starbucks.