Four Test of Competitive Resources Power – Vrin (Valuable, Rare, Inimitiatable, Non-Substitutable)
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2. Starbucks operates more than 17,000 stores in more than 50 countries. How many of the four tests of the competitive power of a resource does the store network pass? Explain your answer.
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