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+ Page view A Read aloud Coming out of sight-yea retroce, Howard Schultz gis took the reins m CEO sed president in Janny 2008, apting to re-create wat bandsde Starbucks special. In lese 2009, Starbucles introduced Via, ita sew et coffee, a move that one wortid might further dilute the beaad. In the fall of 2010, Schultz rolled out a wcw guide line: Baristas would no longer multitask making multiple drinks at the same time, but would instead focus on no more than two drinks at a time, starting a second one while finishing the first. The goal was to bring back the customer experi- ence that built the Starbucks brand INSPIRED BY ITALIAN coffee bere, Starbucks's CEO Howard Schulcz stoot to provide a completely new consumer experience. The trado mark of any Starbucks coffeehouse is its ambience where masle and comfort- able chtics and sofas cncourage custom as to sit and enjoy their coffee beverages While hanging out at Starbucks, they can use the complimentary wireless hotspot or just visit with friends. The barista seerns to speak a forcign language as she rattles off the otheriags: Caff Misto, Caramel Macchiato, Cinnamon Dolce Latte, Espresso Com Panna, or e Mint Mocha Chip Frappuccino, among some 30 different coffee blends. Dazzled and enchanted, customers pey S4 or more for a Venti-sized drink. Starbucks has been so successful in creating its ambience that customers keep coming back for more. Starbucks's core competency was to create a unique consumer experience the world over. That is what cus tomers are paying for, not for the cup of coffee or tea. The consumer experience that Starbucks created was a valuable, rare, and costly-to-imitate intangible resource. This allowed Starbucks to gain a competitive advantage. While intangible resources are often built through learning from experience, intangible resources can atrophy through forgetting. This is what happened to Starbucks. Recently, Starbucks expanded operations by opening over 16,000 stores in some 50 countries It also branched out into desserts, sandwiches, books, music, and other retail merchandise, straying from its core business. Trying to keep up with its explosive growth in both the number of stores and product olier- ings, Starbucks began to forget what made it unique It lost the appeal that made it special, and its unique culture got diluted. For example, baristas used to grind beans throughout the day whenever a new pot of coffee had to be brewed (which was at least every eight minutes). The grinding sounds and fresh colten aroma were trademarks of Starbucks stores. Instead, se accommodate its fast growth, many baristas began to sind all of the day's coffee beans in the morning and store them for the rest of the cay DISCUSSION QUESTIONS Review Chapter 4: Internal Analysis: Resources, Capabilities, and Activities. 1. How did Starbucks creals its uniqueness in the first place? 2 Was Starbucks's uniqueness VRIO resource? Did it help Starbucks gain and sustain a competi- tive advantage? Why or why not? 3. Why and how did Starbucks lose its uniqueness? 4 How is Starbucks attempting to re-create its uniqueness? Do you think it will be successful? Why or why not? 5. Explain Starbucks's ups and downs using a stra tegic activity systems and (b) the dynastic capabil- sties perspective. What implications can you drag! 6. What recomendations will yose Hosen Schultz? Support your arguments Endnotes 1. This image is based in Schulz (1999. Markur Heart tent Co One Case Vape Belt 1007 No se teel life are als