Value Chain of Starbucks PDF

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Summary

Value Chain of Starbucks that includes its primary activities and secondary activities. It contains its
Inbound Logistics
Operations
Outbound Logistics
Marketing & Sales
Service
Infrastructure
Human Resource Management
Technology Development
...

Description

Value Chain of STARBUCKS Primary Activities

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Inbound Logistics

Operations

Finest quality coffee beans are brought from Asia, Africa & Latin America.

Starbucks operates in about 80 countries.

Beans are custom roasted, packaged and then transferred to distribution centres (both the company owned & operated by other logistics companies).

It has over 30,000 stores globally including company owned stores & licensed stores. It also owns many brands like Teavana, Seattle’s Best Coffee, Evolution Fresh etc.

It is also exploring its opportunity to grow its own coffee.

Outbound Logistics Majority of the product are sold in company operated stores and licensed stores. Online sales channel is also utilized by Starbucks for certain range of products. There is very little or no presence of intermediaries in product selling for Starbucks.

Marketing & Sales

Service

Traditionally, Starbucks was not into aggressive marketing.

Starbucks aims at building customers loyalty through its instore customer service.

However, its marketing budget has been consistently increasing since past few years.

They spend a lot of time in analysing customer’s speed expectations.

It has also enabled orders via Amazon’s Alexa.

Secondary Activities Infrastructure This takes into account all the departments that are necessary for keeping store operational. Starbucks employs business managers in its corporate offices.

Human Resource Management There are many training programs conducted for employees which keeps staff motivated and efficient. Starbucks is known for taking care of its workforce causing lower turnover of employees.

Technology Development Starbucks is wellknown for the use of technology. It uses technology for taking orders, queries, suggestions etc., & also use Apple’s iBeacon System.

It also provides free & unlimited Wi-Fi.

Procurement The agents of the company travel to different countries for procuring finest coffee beans to customers. The company tries to maintain higher quality standards through direct involvement from base level.

References: https://www.starbucks.com/ https://www.investopedia.com/articles/investing/103114/starbucks-example-value-chainmodel.asp https://research-methodology.net/starbucks-value-chain-analysis/...