Free Essay Sample - Value Chain Activity

Primary; Inbound logistics Starbucks obtains raw materials from its suppliers, creating a strong relationship with the suppliers for a continuous supply of green coffee. This helps customers get quality coffee from the suppliers and satisfies their needs.

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Operations It owns roasting facilities but leased most warehouses and distribution locations. This makes the products readily available to customers saving on other expenses.

Outbound logistics Starbucks uses online channels for marketing its products and merchandise This gives customers a good description of the products they want.

Marketing and sales Starbucks uses promotions and advertising to market its products. It also uses social media to market and engages with customers. Social media helps customers raise their concerns about certain products.

Service Its stores have an environment where customers can relax and interact freely with the Barista and staff This makes customers feel comfortable and welcomed and feel free to relax.

Support; Procurement The company has a rule of a selection of suppliers with quality products. The suppliers must guarantee quality and use ethical practices (Voigt et al., 2017). This makes customers feel secure while consuming these products.

Technology development IT systems are utilized for web and sales, mobile payment systems, and mobile platforms. This enhances the interaction between Starbucks and its customers.

Human resource management Starbucks train and provide education to its staff and give them the best working environment. It aims at staying ethical while focusing on customers The staff can treat customers well and give their best services.

General administration Planning, management, and finance of important resources and expenses are well organized by strong management and leadership. This leadership helps the company grow financially and operationally. This helps the company realize what products suit its customers the best, thus achieving customer satisfaction.

Key Resources and Capabilities

Starbucks’ key resources are human resources. The innovation staff developing and designing the store and offerings together with the partners form the major part of human resources. It has an upscale and cozy atmosphere, a strong global presence, and specialty coffees. It is the biggest coffee corporation in the world (Geereddy, 2013). There are many competitors, but none of them can gain the presence that Starbucks has globally in the short term. Starbucks stores are designed to take the culture of the neighborhood they are put in to help give value to the neighborhood and give local customers the urge to visit the store. However, specialty stores are not limited to Starbucks stores only as other stores around the world provide specialty drinks, even if it is occasionally in a year. Considering the VRIN model, the Starbucks value chain helps promote competitive advantage. Through its broad operations around the world, Starbucks can attract more customers as compared to its competitors.

Opportunities

Starbucks has various opportunities. It could merge with other stores and warehouses to provide services in more countries around the globe. The company operates in about 60 countries which, could rise to more than 100 countries through expansion (Wu, 2017). It also has an opportunity to develop new and exciting brands to gain a competitive advantage because the company has enough resources.

Threats

There is growing competition in the market with other stores that come up with brilliant products to compete with Starbucks’ existing products. For example, Dunkin Donuts company provides specialty coffee during the holidays meaning that many customers might opt to try and see the difference (Grabs & Ponte, 2019). Although most customers are loyal, this could eventually lead to the loss of some. Also, customers often change their preferences and tastes towards products. If the company does not use the right measures to satisfy their customers, then the company might start experiencing problems with sales.

References

Geereddy, N. (2013). Strategic analysis of Starbucks Corporation. Harward. https://scholar.harvard.edu/nithingeereddy/publications/strategic-analysis-financial-analysis

Grabs, J., & Ponte, S. (2019). The evolution of power in the global coffee value chain and production network. Journal of Economic Geography, 19(4), 803-828. https://academic.oup.com/joeg/article-abstract/19/4/803/5491485?redirectedFrom=fulltext

Voigt, K. I., Buliga, O., & Michl, K. (2017). Globalizing Coffee Culture: The Case of Starbucks. In Business Model Pioneers (pp. 41-53). Springer, Cham. https://www.researchgate.net/publication/305706693_Globalizing_Coffee_Culture_The_Case_of_Starbucks

Wu, H. C. (2017). What drives experiential loyalty? A case study of Starbucks coffee chain in Taiwan. British Food Journal. https://www.researchgate.net/publication/314244915_What_drives_experiential_loyalty_A_case_study_of_Starbucks_coffee_chain_in_Taiwan