Value Anchoring Through Third Place: Strategic Differentiation Pathways for Starbucks' Competitive Breakthrough in the Coffee Industry

Yiming Chen, Jiaxi Hu, Jiawen Liu

2025

Abstract

The Chinese coffee market is transitioning from rapid expansion to stock competition. This predicament reflects a dual tension in market evolution-while consumer demand for the emotional attributes of coffee continues to escalate, the supply side remains mired in low-dimensional price wars. The industry urgently needs to break through the growth trap of "scale without premiumization". Under this background, how physical businesses can reconstruct irreplaceable experiential value has become a critical proposition for resolving industry competition. This study focuses on Starbucks' "Third Place"-centric differentiation strategy, exploring pathways for physical businesses to reconstruct value in market saturation. Research reveals that Starbucks' breakthrough fundamentally lies in transforming stores into "lifestyle vessels," leveraging spatial storytelling to evoke emotional resonance with consumers, thereby establishing brand premiumization amid price-driven competition. The study further proposes that the industry's competitive focus is shifting from product cost-effectiveness to mindshare capture. Only through continuous scenario innovation and cultural empowerment can the sector achieve a paradigm shift-from transactional relationships to value symbiosis.

Paper Citation

in Harvard Style

Chen Y., Hu J. and Liu J. (2025). Value Anchoring Through Third Place: Strategic Differentiation Pathways for Starbucks' Competitive Breakthrough in the Coffee Industry. In Proceedings of the 2nd International Conference on E-commerce and Modern Logistics - Volume 1: ICEML; ISBN 978-989-758-775-7, SciTePress, pages 465-470. DOI: 10.5220/0013847300004719

in Bibtex Style

@conference{iceml25,
author={Yiming Chen and Jiaxi Hu and Jiawen Liu},
title={Value Anchoring Through Third Place: Strategic Differentiation Pathways for Starbucks' Competitive Breakthrough in the Coffee Industry},
booktitle={Proceedings of the 2nd International Conference on E-commerce and Modern Logistics - Volume 1: ICEML},
year={2025},
pages={465-470},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0013847300004719},
isbn={978-989-758-775-7},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference on E-commerce and Modern Logistics - Volume 1: ICEML
TI - Value Anchoring Through Third Place: Strategic Differentiation Pathways for Starbucks' Competitive Breakthrough in the Coffee Industry
SN - 978-989-758-775-7
AU - Chen Y.
AU - Hu J.
AU - Liu J.
PY - 2025
SP - 465
EP - 470
DO - 10.5220/0013847300004719
PB - SciTePress