Table of contents

Report Introduction. 2
Strategic issues identified in Starbucks. 2
Model and strategic theories suitable for starbucks. 3
PROFIT and VRIO MODEL. 3
VRIO Elements 4
Strategic issues faced by Samsung. 5
Model and strategic theories suitable for Samsung. 6
Porter's Generic Business Strategy 6
Conclusion 9
References 10
Report Introduction.

Competitive advantage is the ability to provide products and services that are more desirable to
consumers than those of competitors. This report will discuss some of the strategic issues that
Starbucks and Samsung are facing from the last few years. We will also be discussing how the
suitable models can be used for solving the issues in both the companies. The proposed models
will allow the companies to have a better idea about how to solve various strategic issues
persuading the business. This report will also allow us to have a better look at the company
model suitable for them.

Strategic issues identified in Starbucks.

Starbucks is one of the most popular coffee shops in the world. It has a long history and is
well-known for its coffee, tea, and food.
The company's success is not just due to their products but also because of their strategic issues
that they have identified and addressed (City, 2021).
Some of these strategic issues are:
- Managing growth and maintaining company culture.
- Building customer loyalty.
- Developing a healthy workforce.
Starbucks is the largest coffee company in the world. It has more than 28,000 stores in 77
countries and it is the leading retailer of specialty coffee beverages. Starbucks has been facing a
lot of challenges with its share market performance. It has been struggling to maintain its high
growth rates and it has also seen a decline in same store sales. The company's shares have lost
value by 7% since last year, which means that they are now trading at a lower price than they
were before the financial crisis of 2008-2009 (Fischer, and Roy, 2019). Starbucks has seen a
recent slump in its share price. In terms of revenue, the company has been able to grow at a
steady rate. However, the share price of Starbucks has been down for the last six months and
investors are questioning whether the company can continue to grow at this pace. Starbucks is a
coffee chain that offers customers a variety of different coffees and drinks as well as food items
like sandwiches and pastries (Goh, et al., 2020). The company was founded by Howard Schultz
in 1971 with only one store, which was located in Seattle, Washington but now operates over
18,000 stores worldwide with revenues of $22 billion USD annually. This report will explore the
strategic issues faced by Starbucks and how they can overcome them in order to maintain their
success in the future (Li, Liu and Huan, 2019).

Model and strategic theories suitable for starbucks.

PROFIT and VRIO MODEL.

Starbucks has a long history of using strategic theories to help it grow. One of its most common
strategic theories is the PROFIT and VRIO MODEL. The model is an idea that Starbucks uses to
help its coffee shops increase their revenue, improve customer satisfaction, and enhance
profitability (Bhardwaj, et al., 2018). Starbucks has been able to build its success on the PROFIT
and VRIO MODEL. The proposed model is based on the idea that there are three key
components that contribute to Starbucks’ success - product, price, and place. These three
components are all connected with one another in order for them to work properly. If any one of
these three components changes, then it will affect the other two as well. In order for Starbucks
to maintain its success in the future, they need to make sure that they're always thinking about
these three components when planning its strategy (Musonera, n.d.).
The PROFIT model is a strategy that Starbucks uses to manage their business. They focus on the
long-term goals of the company by identifying sources of profit and then turning them into
market share. The VRIO MODEL focuses on short-term goals by identifying a target market,
developing a strategy for reaching them, and then executing it.
The PROFIT and VRIO MODEL are two models that Starbucks uses to determine how they will
grow as a company in the future. The PROFIT model developed by Michael E. Porter is focused
on long-term objectives. The main difference between these models is that the PROFIT focuses
on long-term objectives, whereas the VRIO focuses on short-term ones. Before introducing the
different models, it is important to understand the history of Starbucks. The main goal is to
maximize the long-term value of a company. The PROFIT model focuses on five key metrics:
asset turnover, cost-profit margin, unit profit margin, gross profit rate, and market share. For
example, the gross profit rate is calculated by dividing a company's gross sales by the total
number of units sold, which is the asset turnover. The PROFIT model was developed to describe
how companies minimize costs when they invest in profits (Tsai, et al ., 2020). A company that
wants to increase their profit would focus on increasing these metrics, and a company that wants
to decrease their cost-profit margin would focus on decreasing those metrics. The model consists
of five generic strategies that Starbucks can use to grow into different markets: low cost,
premium products, breadth of product offering, using suppliers as a resource for innovation, or
partnering with other companies.
The PROFIT and VRIO MODEL are two models that Starbucks uses to determine how they will
grow as a company in the future. The PROFIT model is for long-term planning, while the VRIO
model is for short-term planning. The PROFIT model is the company's primary long-term
growth strategy that has been used since 2003. It identifies four key areas of focus:
1. Business Development.
2. Marketing.
3. Operations.
4. People and Culture.
5. The PROFIT model is used to measure Starbucks' progress towards its goal of generating $5
billion in revenue by 2020, which is equivalent to an annual growth rate of 4%.
6. The main pillar of the PROFIT model is the Growth pillar, which consists of two components:
Market share and customer count.
7. The main goal of marketing is to transform a company's image into what it wants customers to
think about when they think about that brand.
8. One way Starbucks can increase its market share is by creating new and unique ways to
deliver coffee.

VRIO Elements

VRIO elements can be used at Starbucks to provide a better customer experience. They can also
be used to enhance their brand and make it more memorable by making sure that their customers
are having an immersive experience when they visit their store. VRIO elements are not just
limited to Starbucks stores, they can also be used in other areas such as advertising campaigns or
web design projects (Nel, n.d.). Starbucks has implemented a VRIO framework in order to create
a more immersive experience for their customers. They also use VRIO elements such as virtual
menus and an interactive table that can be used by the customer when they are deciding on their
drink. The VRIO framework has been implemented in order to provide a more immersive
experience for its customers. They use virtual menus and an interactive table that can be used by
the customer when they are deciding on their drink. The virtual menus provide an opportunity for
the customer to customize their drinks before they order them giving them a more personal
experience. The interactive table is meant to provide a more comfortable experience for
customers and the barista. The virtual menu includes 2 main categories: drinks and toppings.
These are interconnected through main sections including doughnuts, savory, soups, and sweets.
In order to access these sections, the customer can swipe up or down on the touch screens that
are attached to each side of the roasting machine. The barista can customize the drink selection
by hovering their mouse over the desired option. They have a lot of choices in this section
including coffee and teas, espresso-based drinks, cold brews, and classic espresso drinks. The
toppings section is located below the list of drinks. In this section, there are 3 main categories
that include fruit, nuts, and sugar. These toppings can be used in any drink while they are fresh or
toasted. The types of sugar include raw sugar, turbinado sugar, brown sugar, and powdered milk.
appetizers section includes starters such as pate de fruit with almonds, goat cheese crostini with
honey fig jam & arugula, and more.

Strategic issues faced by Samsung.

Samsung is one of the largest technology companies in the world. It is a global leader in the
electronics manufacturing industry. Samsung’s investment in Google paid off when it helped
improve its own search engine by incorporating Google’s algorithms into their own search
engine called S-GooGle. The iPhone is the best product that Apple has ever made" Steve Jobs
said in 2007 (Asdi and Putra, 2020). It was the beginning of a long-running battle between
Samsung and Apple that would ultimately result in Samsung's bankruptcy. As both companies
started competing more fiercely, they began to release their own products at faster rates than
before and began to gain market share over competitors. However, this fast-paced race led to an
inevitable downfall for both companies as they were unable to keep up with their own pace of
innovation and release new products on time (JOSHI, 2020). In the early 2000s, Samsung was a
shining star on the tech scene. It was one of the most innovative companies in the world and it
was making a name for itself with its Galaxy line of mobile devices. In 2004, Samsung had a
budget of $8 billion to spend on advertising and marketing (Ashta and Biot, 2018). That year,
Samsung made an investment in Google’s search engine that would change everything for both
companies. This allowed Samsung to take over from Microsoft as the number one search engine
in Korea and have a significant impact on Google’s market share globally (Kim, et al., 2019).
Strategic issues faced by Samsung:
- Samsung’s global leadership position has been challenged by new competitors like Huawei,
Xiaomi, and Apple.
- Samsung has to deal with more and more patent lawsuits from its rivals.
- Samsung is currently facing a backlash to its use of labor in China.
- Competition with TCL and WiseKey in China.
- Weak smartphone market, especially in Europe.
Samsung is one of the largest and most successful electronics companies in the world. It has a
strong presence in the global market and has even been ranked as one of the top 10 most valuable
companies by Forbes. However, despite its success, Samsung has had to face many challenges in
recent years. The company’s strategy is to create new products that are innovative and
technologically advanced while making sure they are affordable for consumers. This has made it
difficult for Samsung to maintain its competitive edge against other brands like Apple and
Huawei who have more resources than Samsung. Samsung is also facing pressure from
competitors like Amazon who are trying to take a bigger share of the global market with their
own products like Amazon Echo and Alexa.

Model and strategic theories suitable for Samsung.

Porter's Generic Business Strategy

Porter's Generic Business Strategy is a business strategy that helps companies identify the market
they are targeting and what their strengths are. It is a framework for thinking about how
businesses should allocate resources in order to maximize their profits and growth. The generic
business strategy framework was developed by Michael E. Porter of Harvard Business School.
The framework has three components: market, competitive position, and value chain. Porter's
Generic Business Strategy is a strategy that can be used for any industry (Chang, Zhang, and
Xiong, 2019).
The strategy is based on the idea that in order to succeed, a business must have a competitive
advantage over its competitors. It must have something that no one else has, or it must be able to
produce more with less than its competitors. This competitive advantage can come from cost
leadership, differentiation, or focus. Porter's Generic Business Strategy is a business strategy
framework developed by Michael E. Porter. Porter's Generic Business Strategy has four generic
strategies that are used to drive the success of a business: cost leadership, differentiation, focus
on core competence and customer value (Islami, Mustafa and Topuzovska, 2020). Porter's
Generic Business Strategy has four generic strategies that are used to drive the success of a
business: cost leadership, differentiation, focus on core competence and customer value
proposition.
Samsung’s case study, “The Porter's Generic Business Strategy at Samsung,” explains how
Porter’s generic business strategy was applied to Samsung Electronics Company. The company
discusses how they implemented the strategy in order to achieve more efficiency, better customer
satisfaction, and higher profits (Saputra, Haryono and Untoro, 2019). This case study is an
example of how companies can use the strategy to improve their performance. Porter's Generic
Business Strategy was developed by Michael E. Porter. This business strategy is used to achieve
more efficiency, better customer satisfaction, and higher profits. Michael Porter's Generic
Business Strategy is observed at Samsung Electronics Company in constructing a strategy for the
company's generic business. Porter's Generic Business Strategy (GB) is a strategy that helps an
organization to develop its business by identifying the competitive advantages and weaknesses of
the firm. Samsung has used Porter's Generic Business Strategy to identify its competitive
advantage and weaknesses. Porter’s Generic Business Strategy is a framework that helps
businesses identify their competitive advantage and weaknesses. Samsung has used Porter's
Generic Business Strategy to identify its competitive advantage and weaknesses. They have
identified the strengths of the company such as its leadership in mobile technology, design, and
marketing. They have also identified what they are lacking such as customer service, innovation,
and product quality. Porter's Generic Business Strategy is a framework for analyzing a business
situation and identifying the competitive advantage and weaknesses of the company. Samsung
has used Porter's Generic Business Strategy to identify its competitive advantage and
weaknesses. They are able to identify the opportunities that they should focus on in order to
grow their market share. Porter's Generic Business Strategy helps companies analyze their
business situation, identify their competitive advantage and weaknesses, find opportunities,
create strategies for growth, and ultimately increase profitability. They have identified their
competitive advantage as "innovation" and their weakness as "customer intimacy". Porter's
Generic Business Strategy can be applied in many different ways, but this case study focuses on
how it can be used at Samsung. Porter's Generic Business Strategy is a model for how companies
should operate. It is a business strategy that is widely used by companies of all sizes. This
strategy includes the five forces of competition, the value chain, and the generic strategies that
companies can use to compete in their industry. Samsung has been using this strategy to help
them grow and become more competitive in its industry. They have been able to use it because
they are not just competing with other electronics brands but also with brands like Apple and
Amazon.
Conclusion

From the above report, we conclude that Starbucks mainly faces strategic issues from its share
market values. It can use the PROFIT and VRIO business models in combination in order to
solve these issues. On the other hand, we can see that Samsung faces its issues mainly due to its
competitors. In order to get rid of such issues, Starbucks can follow the Porter’s Generic
Business Strategy model. From the above situations we can conclude how these companies can
use these different business models in order to rectify any persisting issues. This report gives us a
clear perspective from all points of view.
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