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Essay / Starbucks Business Model
Starbucks Corporation is an American company founded in March 1971 by three people who met at university (Baldwin, Siegl and Bowker). Although its headquarters is based in Seattle, Washington, the company operates in more than 23,700 locations worldwide as of 2016, with revenue of more than $22 billion. Say no to plagiarism. Get a Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get Original EssayStarbucks considers itself to be one of the leading coffee distributors, roasters and retailers. It differentiates itself from other coffee service establishments by the quality of the products they offer and, more importantly, the customer experience they create. It wasn't until the 1990s that Starbucks experienced meteoric growth to become the leading coffee retailer in the United States, if not the world. Indeed, Howard Schultz, who purchased the corporate chain for around $4 million, decided to replicate the atmosphere he experienced in Italian cafes during his trip to Italy. This trip inspired him to later bring this social experience to American society and the rest of the world. His marketing and sales expertise spotted the opportunity to use the customer experience he wanted to create. As a result, he made several strategic adjustments, including adding more items to the menu, improving employees' relationship with the company, and providing comfortable and personal seating for customers. A business model describes how a company creates customer value, how it delivers it, and how it captures value. Today, people go to Starbucks not only for the coffee, but also for the experience they can have. The unique value propositions offered by Starbucks depend on the customer segments it targets. For example, Starbucks offers unique coffee-grade drinks for the taste of backpack coffee. As for professionals, Starbucks offers a place between home and office, a place where a business meeting with a colleague/partner can take place. Starbucks also creates an atmosphere for students and young adults to hang out, meet their friends/classmates and even do their homework. The main channels used by Starbucks to sell their products and services are through their own official or partner/merchandise stores in almost all countries. 70 countries. However, other channels such as supermarkets, airports and hotels are used as channels to reach more customers and increase sales. It has been argued that Starbucks' vending machines have failed to deliver the Starbucks experience that one can get in a store; like chatting with the barista about life in general. But anyway, one cannot have this experience in a busy and hectic store atmosphere. Starbucks maintains a close, personal and long-term relationship with all its customer segments who have integrated the brand into their lifestyle. This has created a sense of loyalty among members who can now use their loyalty card and mobile apps to pay. The creation of value propositions is due to the intensive key activities taking place within the Starbucks chain. This includes effective marketing communications, effective supply chain management, intensive R&D and all other activities related to the maintenance of their stores. These key activities are supported by three main key resources. First, its own people (employees, suppliers and customers) who are loyal to the company because of the way they are treated, its brand which..