How Could Benchmarking Be Effectively Used to Achieve Competitive Advantage?
How could benchmarking be effectively used to achieve competitive advantage?
Please provide an example.
Starbucks
Even Starbucks has to Benchmark
Considering it's benches are always full of hipsters sipping their half-caf low-fat moccachinos, you might think that Starbucks would have no need for benchmarking, as many of its benches already have permanent rear-shaped impressions from long-time customers. But that's not the case at all.
In this great case study in DC Velocity, we find out that, as of 2008, costs had risen faster than sales for three years running (since you can't grow fast in a market that's already near the saturation point), there were no metrics to measure service performance and, once measurement criteria were instituted, less than half of all store orders in the United States and Canada were delivered on time.
However, once the company started benchmarking and focussed on revamping the supply chain to improve its performance, in a mere two years, Starbucks was able to increase on-time performance to almost 90% and results are still improving. So if you want to improve your supply chain, it starts with a good benchmark
A Competitive Strategy for Starbucks
In short order, Starbucks Corporation has become a premier purveyor of coffee and related beverages along with selected merchandise and has acquired almost universal domestic brand name recognition (MacArthur, 2001). Currently, Starbucks is engaged in a number of activities designed to expand its presence in the new global beverage market. Starbucks' growth strategy thus far has tended to emphasize positioning its stores in high traffic areas, including mini-stores located in hotels, upscale grocery stores, shopping mall food courts, and other ventures which are not free-standing (Kim, 2000).
The company has also adopted a highly aggressive globalization strategy to capitalize upon European tastes and interest in American coffee products (Moran, 1999). Equally significant, according
Please provide an example.
Starbucks
Even Starbucks has to Benchmark
Considering it's benches are always full of hipsters sipping their half-caf low-fat moccachinos, you might think that Starbucks would have no need for benchmarking, as many of its benches already have permanent rear-shaped impressions from long-time customers. But that's not the case at all.
In this great case study in DC Velocity, we find out that, as of 2008, costs had risen faster than sales for three years running (since you can't grow fast in a market that's already near the saturation point), there were no metrics to measure service performance and, once measurement criteria were instituted, less than half of all store orders in the United States and Canada were delivered on time.
However, once the company started benchmarking and focussed on revamping the supply chain to improve its performance, in a mere two years, Starbucks was able to increase on-time performance to almost 90% and results are still improving. So if you want to improve your supply chain, it starts with a good benchmark
A Competitive Strategy for Starbucks
In short order, Starbucks Corporation has become a premier purveyor of coffee and related beverages along with selected merchandise and has acquired almost universal domestic brand name recognition (MacArthur, 2001). Currently, Starbucks is engaged in a number of activities designed to expand its presence in the new global beverage market. Starbucks' growth strategy thus far has tended to emphasize positioning its stores in high traffic areas, including mini-stores located in hotels, upscale grocery stores, shopping mall food courts, and other ventures which are not free-standing (Kim, 2000).
The company has also adopted a highly aggressive globalization strategy to capitalize upon European tastes and interest in American coffee products (Moran, 1999). Equally significant, according