The Application Of Competitive Strategy Dynamics Essay

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THE APPLICATION OF COMPETITIVE STRATEGY DYNAMICS: A CASE STUDY OF STARBUCKS CORPORATION
Abstract
Firms that earn persistently higher levels of profit than competitors have a competitive advantage (Grant, 2008; Porter 1985). Michael Porters famous five forces of competitive position model provide a simple perspective for assessing and analyzing the competitive strength of a corporation or business organization. The competitive advantage (CA) model of Porter learns that competitive strategy is all about taking offensive or defensive action to create a defensive action to create a defendable position in an industry in order to cope successfully with competitive forces and generate a superior return on investment. Starbucks is a notable company that can be useful to researchers and industry observers who want to understand the underlying factors for a company to achieve a sustainable competitive strategic position in an ever-saturating industry. Starbucks is an exemplary company that has continued to succeed with a new take on an established product, coffee. On July 21, 2016, Starbucks corporation reported 3rd quarter 2016 earnings of 0.49 per share. This result is in line with the consensus of the 27 analysts following the company and this exceeded 2015’s 3rd quarter result by 16.67%. Given this background, a case study of Starbucks is presented and analyzed in this writing to determine and evaluate their competitive strategic dynamics.
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