The Starbucks Value Chain Model Analysis


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The starbucks value chain model is divided into different activities:

Starting with the primary activities, Starbucks persists the idea of maximum simplification of all activities that compose the logistics of the company.For example, they pack and distribute their coffees into dozens of central distribution centers around the world. They deliver more than 70,000 deliveries per week to stores which are located in 75 different countries.

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On another hand, we have to take into consideration the strategic relationship with suppliers, due to that is one of the most important factors of the value chain. They obtain suppliers from farmer support centers which employ agronomists and experts who work with coffee farming communities that give best practices in terms of the production of the raw coffee. In this way, they can guarantee the best quality of the product.

As we have mentioned, Starbucks operates in 75 countries, and have two different store modalities, which are the company-operated stores, that permit the managers to know the number of shifts in consumer preferences. Be aware of the consumer behavior and the news of the market in order to be updated in all moment. On the other hand, there are the licensed stores, which are not really bound to Starbucks, apart from selling some of their products.

In terms of value, Starbucks operations include the market position of their establishments in order to be on the top and obtain the main visibility as possible.On the other hand, customers in 70% of the cases are satisfied with a Starbucks experience, because they respond that they had a good time and the products are composed of high quality.Some of them go to Starbucks stores to work, because they can focus and have the WIFI connection to allow it.Following the outbound logistics, which consists of the global strategy. We will start by the Marketing department.

In the first years of the company, they didn’t invest at all in marketing, they just believed in word-of-mouth and traditional publicity.But when times passed, they realized that they could even duplicate their sales by investing on promotion tools, like commercial campaigns on TV and social networks. After that their level of competition increased substantially at the point that they integrated an efficient technological service that allowed customers to buy in an easier way.

Superior customer services are the core source of Starbuck competitive advantage and this particular primary activity adds an enormous value to the brand image Occasionally, regular customers may get their regular coffee free of charge at the discretion of baristas as a good gesture and such acts increase the perception of the service quality to a considerable extent. 

Finally, the service that Starbucks gives to the customers is remarked on by most of the customers, it’s defined as one of their competitive advantages and has a great value to the brand image.

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