Starbucks Coffee: Business Strategy and Value Drivers

Starbucks Coffee

Introduction
• Starbucks corporation is being considered as one of the popular American
coffee house chain, with the operating value of US$4.135 billion in 2017
(Starbucks.com.au 2019). In order to describe the effectiveness of business
strategy and value drivers of Starbucks, in the coffee industry, the research
has been conducted.
• Starbucks history: In the year 1971, Starbucks was founded by three
partners Gordon Bowker , Zev Siegl and Jerry Baldwin.
• Geographic presence: Starbucks operates 62 countries across the world
with the total numbers of 20000 stores (Starbucks.com.au 2019).
• Environmental responsibility: A greener plan for 10000 environmentally
friendly stores has been introduced by Starbucks. Starbucks has contribution
on World Wildlife Fund and SCS Global Services (Starbucks.com.au 2019).

Marketi
ng
Advertis
ing
Loyalty
Program
s
Coffee
Produce
rs
Product
develop
ment
Focus
groups
Recipe
Procurement
Agencie
s
Owned
Chann
els
Legal
HR Training
Wifi
Apps
Manufac
turing
coffee
cups
Store
Fitters
Real
Estate
Finance
Loan
Program
s
Product
packagi
ng
Techn
ologic
al
innova
tion
Teavana
Seattle’s
Best
Coffee
Evolutio
n Fresh
Starbuc
ks
owned
data
centre
CUSTO
MERS
SERVIC
E
Recyclin
g
Waste
Land Fill
&
Compost
Transpo
rt
Compani
es
Latin
America
Africa
Asia
Third
party
DC
Manufac
turing

Continue...Marketing
• Social media plays an important role in the marketing and sales operations in Starbucks
• Different advertising as well as social media campaigns have been introduced.
• Loyalty program has also been introduced by Starbucks
Coffee production channel
• After completion of the legal licensing processes, procurement process being conducted.
Product development
• In case of developing new product in the market, product recipe is being introduced in the
market.
• Single wall coffee cups has been introduced by the company for make the recycling process
easier
• Based on the needs of target customers, product packaging is being done so that large
numbers of customer attention can be grabbed.
Manufacturing
• Asia, Africa and Latin America are the main source of raw materials
• Maintaining uninterrupted coffee beans supply chain can
• After collecting the manufacturing products, these are being send to the third parties
through transporting channels