A Resource Based Analysis of Starbucks

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A Resource Based Analysis of Starbucks

The current economic situation has required that organizations rethink the way that they do business. With people losing jobs and salaries being cut, people are spending money on essentials and opting less and less to spend on the extras. Groceries, rent, housing, transportation, education are of value while grooming, meals out, movies and cups of coffee or considered frivolous expenses. One organization that banks on Americans need to feed their self focused desires is Starbucks Coffee. Starbucks. Starbuck’s leadership, well aware of the effect that the crisis could have on the company, outlined a plan that included “increased store and operating efficiencies, additional cost reductions and
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“The Linea machine from La Marzocco”, which can be bought for a mere $6,500 per machine, was the espresso machine of choice for the Starbucks franchise ("Starbucks Coffee Company," 2003). La Marzocco machines are the machines of choice for US Regional, US National, and World Barista competitions – no shabby piece of equipment.
Starbucks’ largest intangible resource must indisputably be the loyal consumer. Starbucks offers the customer much more than a cup of coffee. The company offers a place to think and gather; a tastefully adorned atmosphere with comfortable chairs; and a place to imagine. They offer a place where ‘everybody knows your name. In a blog, one customer relays this story:
Three weeks ago I pulled an all-nighter. Around 5am, craving caffeine, I decided it was time for a Starbucks break. I hopped in the car and drove down the street, pulled up outside Starbucks, and noticed the sign was still dark and the lights were off inside. I thought they opened at 5am, but it was Sunday and the store was still closed. I stopped the car, went up to the door to look at the hours so I’d know when to come back, turned around to walk back to the car.

I figured the coffee would have to wait…

…until the lock threw and the door flew open and one of my regular baristas noticed me, asked me how I was doing and whether I wanted something to drink. Now, get this (and pay attention Borders, Hollywood Video and other retail folks) … the store didn’t open
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