StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Starbucks Five Forces and Value Chain - Case Study Example

Cite this document
Summary
The paper "Starbucks Five Forces and Value Chain" is a perfect example of a case study on marketing. Porter's five forces are used, in theory, to analyze the industry and develop a strategy. The effects include competition, consumers, suppliers, the substitution of products. Their relationship is explained diagrammatically as in the paper…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.6% of users find it useful
Starbucks Five Forces and Value Chain
Read Text Preview

Extract of sample "Starbucks Five Forces and Value Chain"

The paper "Starbucks Five Forces and Value Chain" is a perfect example of a case study on marketing. Porter's five forces are used, in theory, to analyze the industry and develop a strategy. The effects include competition, consumers, suppliers, the substitution of products. Their relationship is explained diagrammatically as in the paper.

Starbucks as a global coffee company generated $14.9 billion in revenues in the year 2013. It has a network of over 200,000 partners. Competition: it faces a lot of competition from well-established operators within the industry like McDonald's, Caribou Coffee, and Costa. Customer bargaining is very high on its side due to low switching costs. In addition, there is a significant threat to its substitutes from tea, water, soft drinks among many others. Their suppliers also have a very high bargaining power due to the vast demand for coffee while only a few places favor its production. However, there is little threat concerning entrants because of the saturation of the market and massive investments required to establish operations into the market (Lee 2014).
Value Chain Analysis allows the firm to know the varied aspects of its operation. These include infrastructure, human resources, technology development, and procurement. The analysis exists as primary activities and supports roles. The inbound logistics of Starbucks involves the establishment and communication of Coffee quality. The company operates in over 50 countries through its licensed stores. Outbound logistics includes sales of the products directly through its stores (Lee 2014). There is little involved in marketing as the quality sells itself. However, the company provides high-level customer service as stipulated in its mission statement.
Support services involve infrastructures such as well defined management planning, finance, accounting, and legal support. HR is seen by the company as the most valuable asset and accorded the necessary requirements to work. The company uses technology to save on its costs and to bust efficiency and effectiveness. Its procurement wing deals with purchases required in production (Lee 2014). Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Starbucks Five Forces and Value Chain Case Study, n.d.)
Starbucks Five Forces and Value Chain Case Study. https://studentshare.org/marketing/1886334-analysis-of-starbucks-five-forces-and-value-chain
(Starbucks Five Forces and Value Chain Case Study)
Starbucks Five Forces and Value Chain Case Study. https://studentshare.org/marketing/1886334-analysis-of-starbucks-five-forces-and-value-chain.
“Starbucks Five Forces and Value Chain Case Study”. https://studentshare.org/marketing/1886334-analysis-of-starbucks-five-forces-and-value-chain.
  • Cited: 0 times

CHECK THESE SAMPLES OF Starbucks Five Forces and Value Chain

Starbucks Chairman Warns of Watering Down

This thought resulted in one of the world's major coffee house chain – Starbucks – that was dedicated not only on selling the coffee but the coffee culture, later came to be known as Starbuck's Experience (Baron 1999).... … The paper "starbucks Chairman Warns of Watering Down" is a wonderful example of a Management Case Study.... starbucks has excelled as both a popular and profitable company in the food and beverage industry....
13 Pages (3250 words) Case Study

Individual Case Analysis

starbucks coffee was an idea by college students and developed by Howard Schultz turned into a profitable multimillion company.... The steady growth and expansion of starbucks coffee stores were disrupted in 2007 when the share prices of the company dropped by 75%.... starbucks coffee was an idea by college students and developed by Howard Schultz turned into a profitable multimillion company.... The steady growth and expansion of starbucks coffee stores were disrupted in 2007 when the share prices of the company dropped by 75%....
9 Pages (2250 words) Case Study

Reasons for Corporate Social Responsibility - Apple, Adidas and Starbuck Coffee Company

Corporate Social Responsibility is becoming normal as avant-garde firms embed sustainability into their major business operations to establish shared value for society and business.... Corporate Social Responsibility is becoming normal as avant-garde firms embed sustainability into their major business operations to establish shared value for society and business.... CSR is becoming normal as avant-garde firms embed sustainability into their major business operations in order to establish shared value for society and business....
8 Pages (2000 words) Case Study

Strategic Analysis of Starbucks Corporation

External Analysis Political Economic Regional integration of the markets which is the current trend and external factor presenting an opportunity for the company; Improvement in government support for the infrastructure creating an opportunity that markets the products accessible to many market suppliers; Bureaucratic red tape for the developing countries which could be a threat as it affects organizational expansion High growth in the developing countries contributes to gaining more revenues across the globe Declining the rates of employment The rising cost of labour in the countries of the supplier as an external factor threatens the company as it increases the spending for ingredients Social Technology A growing coffee culture which increases the company's revenue based on the rising demand for quality coffee Increasing health consciousness Growth in the middle class which is an opportunity for widening an array of healthful products for the attraction of health-conscious consumers Rising mobile purchases which link to the services it provides for acquisition of more revenues Technology transfers to the coffee farmers which improves supply chain efficiency Rising availability in quality coffee machines for uses in homes which is a threat as it increases the availability of the substitutes Environment Legal The business sustainability trend focusing on the business processes ensuring minimal environmental impacts with much stress on the corporate social responsibility Growing popular support for environmentally friendly products Growing popular support for the responsible sourcing policies that offer recycling packaging Existence of product safety regulations Genetically Modified Organism (GMO) regulations Increasing employment regulations ...
11 Pages (2750 words) Case Study

Customer Benefit Package and Value Chains Analysis: Starbucks and Amazon.com

The concept of value-added, with respect to the value chain, is employed to determine a company's sustainable competitive advantage.... The concept of value-added, with respect to the value chain, is employed to determine a company's sustainable competitive advantage.... Essentially, the aim of the value chain is to minimise cost and maximise value.... value chain analysis is also conducted.... To this end, Porter's (1990) value chain model recommends two key processes, namely primary and support activities....
11 Pages (2750 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us