Starbucks/Itunes Partnership

Marketing is another key aspect that both Starbucks and Tim Hortons do differently for their company. Starbucks has intensely used technology applications such as for the iphone, in which a customer can use their mobile phone to make their purchases and it is also connected to the Loyalty Card that Starbucks has (Baker 2012). Starbucks also uses Facebook and online shopping to market their products. For example, in regards to social media, that area is part of the Marketing team in the UK and Ireland. They include customer care and public relations people, as well. Ian Cranna, Vice President for Marketing, stated that Starbucks believes “that customers want genuine and authentic interaction with the brands they choose to engage in online” (Lifting the lid on social… 2012). Starbucks hosted a “Frappuccino Happy Hour” and Cranna also

* Starbucks are very good at taking advantage of opportunities. In 2004, the company created a CD-burning service in their Santa Monica (California USA) cafe with Hewlett Packard, where customers create their own music CD.

Founded in 1985, Starbucks is one of the largest coffeehouse companies in the world, with over 16,000 stores in 50 countries (Starbucks Annual Report, 2009, p. 1). Starbucks sells high-quality

Starbucks handpick all of the music played in their stores and create unique compilations of their own. For example, compilation of pop band “Maroon 5”, Latin Alternative Music "Cafe con Musica" to motherhood-inspired album “Every Mother Counts 2012”.

Starbucks is a worldwide coffee company that produces world-class coffee, pastries and beverages. They are known as one of the most productive global coffee companies. Starbucks began as a small coffee and was founded by Jerry Baldwin, Zev Siegl and Gordon Bowker in Seattle, Washington in 1971. It is now headquartered in Seattle, Washington and incorporated in Olympia, Washington. The company’s fiscal year end date is September 27th. Although Starbucks has its own audit and compliance committee, that puts together their financial statements and reviews all accounting and financial processes pertaining to the financial status of Starbucks Company, KPMG also audits their financial statements.

The company location is based at Penang, Butterworth Sunway Carnival Mall. The facilities such as free Wi-Fi, comfortable sofas and chairs, dimmed light and quiet relaxing music will help the customers to relax from the daily stresses and will differentiate Starbucks Coffee shop from incumbent competitors. To speed up the customer service, at least two employees will be servicing clients. Meanwhile one employee will be preparing the customer’s order, the other one will be taking care of the sales transaction.

As was discussed previously, the partnership between Apple ITunes and Starbucks to develop the ITunes store, has added, in fact, a third entity, AT&T. AT&T

“We are not in the coffee business, serving people. We are in the people business, serving coffee”, Howard Schultz’s philosophy has shaped and continues shape Starbucks, the world’s number one specialty coffee retailer with over 21,000 outlets in more than 65 countries nowadays (Starbucks, 2011). Starbucks was founded in 1971 and Howard Schultz joined Starbucks in 1982. In 1987, Howard acquired Starbucks and changed the name to Starbucks Corporation.

In doing so, Starbucks positioned itself to welcome music lovers who could grab a cup of coffee and burn songs onto CDs. (Industry Snapshot).

from a small local store to its current global enterprise. Starbucks has strategic partners all over

According to Gulati, Huffman, and Neilson (2002), Starbucks proves relationships is an important asset for growth. Starbucks is a relationship-centric organization which relationship is act as a core asset of the firm. This asset is called “relational capital”, which indicates the value of a firm’s network of relationship with stakeholders such as customers, suppliers, alliance partners, and employees. Alliances Starbucks had made with its partners are one of the main cause Starbucks has become well-known brand and coffee leading company in the world.

Starbucks is also partnering with Chapters and Barnes & Noble. The high traffic in bookstores has led to a higher volume of sales for the company. In addition to the above channels, the company is working with NGOs to support the purchasing of fair trade coffee beans to reach long-term sustainability.

Starbuck has entered into these other categories through partnerships and joint ventures. These relationships make sense, because every partnership is with a company in an industry related to Starbuck’s industry (e.g. Pepsi, Kraft, Unilever, Green Mountain etc.). Starbucks does not enter into partnerships with only one company; but collaborates with many companies, that are the respective leaders in their industry. The coffee company uses many of their partners as guides to learn from, and build relationships in a particular industry. Strategically this makes sense because Starbucks is gaining knowledge and not spending a major amount of money. Therefore, when the

There are several areas where Starbucks is doing a fantastic job leveraging Information Systems; three of these areas are the My Starbucks Rewards (MSR) program, the Starbucks App for Android and iOS, and the Mastrena Machine which is found in over 75% of their stores.

Starbucks have shown in the past that they are very good at taking advantage of opportunities. In an strategy alliance with Hewlett Packard, customers could create their own music CD within a Starbucks coffee shop. Thus the company could look for these kind of opportunities to seize. In addition, new markets for coffee are emerging such as India and the Pacific Rim nations, also Europe which is getting more and more accustomed with the brand name “Starbucks”. Co-branding with other manufacturers of food and drink, and brand franchising to manufacturers of other goods and services both have potential.