Strategic Management

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Strategic Management
Starbucks and Dunkin Donuts are two businesses that deal with the same product, coffee. However, Starbucks have been performing better in the market than Dunkin Donuts. This is in terms of the overall profits that it makes as compared to Dunkin donuts as well as the its strategies in reaching its target market. The existence of Starbuck in the market for a longer time may also explain the difference. The unstable market conditions that the latter have been experiencing since it started its operations led to formation of long term strategies to face out competition that has been on the rise.
The valuation of Starbucks products to its customers seems to be a bit high compared to how customers value the products from Dunkin. Starbucks has great bargaining powers from the suppliers` perspective to the customer`s perspective. This has led to low costs of production that has led to its strategic pricings that face out its rival competitors.
The profitability and competitive strategies that Starbuck have implemented have led to its success in the competing environment. The existence of Starbuck for a very long time now may have created its reputation to the customers hence a good profitability base. This has led to the stableness of the business even with its higher prices of the products than the competitors. Many customers still go for the Starbuck`s coffee even if it`s somehow expensive from its competitors set prices.
The internal resources of the Starbucks Company are non-imitable. This is from its workers, machi...