Starbucks Business Model

There are 15,756 Starbucks stores in 44 countries. To have that many stores, serve that many people, and ensure they still maintain the best and highest quality of beans, really sets some doubts. Starbucks has truly become the McDonald’s of the coffee industry because of the supply and demand. In the Starbucks business, quantity is greater than quality because quantity equals to money, where as quality costs more money. There is no win/win situation with this equation when your business is serving practically the world.

Starbucks started out as a single coffee shop in Seattle with a mission to serve fresh-roasted coffee and teas. Starbucks then expanded into major cities in America as well around the globe (About Us). Today, Starbucks is the largest coffeehouse in America with over 15,000 stores in operation (Statista). Starbucks two main priorities are serving premium drinks, and creating a positive environment for their employees, who Starbucks refers to as “partners.” Starbucks has seen success for a multitude of factors such as a large demographic of customers, which includes adults, teens, college students, middle class, and upper class consumers.

Starbucks is one of the most recognizable coffee retail chains in the world. Their brand focuses on high quality coffee using specialized roasting of beans from many countries around the world.

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Introduction .................................................................................................................................... 3 Background Analysis ....................................................................................................................... 3 Business Model Framework ............................................................................................................ 4 Value Creation................................................................................................................................. 5

1.Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion.

Starbucks does not expand by way of traditional franchising. They do however have another opportunity they offer to those seeking Starbucks outlets. This idea resembles the franchise, but is still different; they call it a Starbucks Licence Store. Around 44 % – 54 % of the worldwide Starbucks stores are Starbucks Licensed Stores. Starbucks only offers the ability to license stores based on location. Generally it is only possible to license Starbucks stores in areas where corporate stores cannot operate, such as universities or airports.

Starbucks is and will continue to be one of the largest distributers of a cup of coffee today and into the future.  The Starbucks mission to “inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” directly correlates with the experience a customer has in each store. They have many ways to differentiate in comparison to competitors because they provide an experience while shopping for a coffee allowing them to charge a premium price.

* Starbucks expanded to pursue sales of products in a variety of distribution channels and market segments. Products were marketed to restaurants, airlines, hotels, universities, hospitals, business offices, country clubs, and select retailers. In the airline industry, Starbucks coffee was served in flights United Airlines and United Airlines. Packets of Starbucks coffee along with coffee making equipment were made available in each room in Hyatt, Hilton, Sheraton, Radisson and Westin Hotels. Coffee service was also provided in several Wells Fargo banks in California. Foodservice distributors such as Sysco

store provides. The firm employs a staff of over 100 people whose job is to

Starbucks—This $21 billion Seattle-based company sells has over 9,000 outlets world-wide. Selling everything from coffee to CDs, Starbucks is in the business of the “coffee experience,” and they’re always looking to partner with those companies that will best complement their customers’ desires for a high quality coffee drinking

Today, Starbucks coffee an American global coffee company has 21,160 stores in 63 countries. Coffee shop that scored top rating for customer satisfaction in 2008 American customer satisfaction index. With its practices, Starbucks take advantage in the five stages in consumer purchase decision making process. Next, Starbucks’ marketing strategy

Starbucks is known as the premier company of the finest coffee in the world. They purchase and roast high quality whole bean coffee, sells them with fresh, rich-brewed Italian style espresso beverages, pastries, confections and

Now a days, I like to think that Starbucks is one of the most recognized specialty coffee brands in the world. With numerous locations in over 62 countries, (Starbucks Annual Report, 2013) most of them located in shopping centers and airports, it makes it difficult to drive a few miles without coming across one of their many locations. Starbucks is not only a premier roaster, marketer and retailer of specialty coffees, they also have many other brands within their portfolio: Teavana, Tazo, Seattle’s Best Coffee, Starbucks VIA, Starbucks Refreshers, Evolution Fresh, La Boulange and Verismo (Starbucks Annual Report, 2013). Starbucks, as you can see is not just coffee, they offer quality food items, coffee accessories and teas. They also sell whole bean and ground coffees, premium Tazo-branded single serve products, and other branded products sold worldwide through grocery stores, warehouse clubs, convenience stores and specialty retailers (Starbucks: About Us, n.d.).

Its most recognized product, specialty coffee, is sold in over in 62 countries around the world and the company currently trades publicly on the NASDAQ Global Select Market. In addition to coffee, Starbucks also offers tea and other beverages as well as fresh food items. Starbucks mainly operates through company-operated stores but also has licensed its trademark to offer products in grocery stores and other venues. Starbucks has grown to become a well-recognized, widely successful company and its strategic use of human resource management has contributed greatly to its success.

Starbucks has a significant geographical presence across the globe. It has been recognized for its high quality coffee and for the exceptional service experience they provide. It is the first coffee retailer in the world with the highest market share (Business teacher organization, n.d). Nowadays, Starbucks has operations in over 60 countries and a total number of 22,519 stores as of June 28, 2015 (Starbucks website). Also, it is the most recognized brand in the coffeehouse sector and is ranked as one of the most admired companies in America in 2015 (Starbucks website). Starbucks effectively strengthen its brand equity by merchandizing products and licensing its brand logo out. This strong market position and brand image has given the company a significant competitive advantage for growing in both national and international markets (Geereddy, n.d).