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Starbucks' Value Chain Analysis

Starbuck's Value Chain Analysis

In analyzing the structure and performance of Starbuck's ***** Chain, an analysis of the company's strengths, weaknesses, opportunities and threats have been completed, followed by an assessment of their product, marketing and sales, and customer service functions. The value chain was originally defined by Dr. Micheal Porter as a means to defining how the key functional are***** of a company coordinate ***** synchronize with each o*****r to accomplish their strategic objectives (Porter, Millar, 149).

Figure 1: Porter's Value Chain Model (Porter, Millar, *****)

***** primary activities of Inbound Logistics, Operations, Outbound Logistics, Marketing and Sales and Service form the primary activities of any value ***** according to (Porter, Millar, 149) ***** by the support activities ***** the organization, human resources, technologies, ***** purchasing. Taken together these combination of factors create the value chain the all companies rely on to produce products, deliver services, and c*****tinually develop next generation products to serve the needs of *****ir cus*****mers.

SWOT *****

Strengths

***** catalyst of the core strengths that Starbucks has can be traced to their ability ***** exp***** retail locations quickly and profitably. This strength of rapid retail expansion has *****en the basis ***** their second key strength, which is their wide geographic presence. Third, their robust financial per*****ance in inclusion in the Fortune 500 for the first time illustrate how tightly intertwined ***** three core strengths of the company are. What also has emerged as a key competitive differentiator ***** the company is ***** speed at which Starbucks can ***** new products. Their ne product development process that ***** global in scope, tak*****g into account seasonal variations in each hemisphere, is also one ***** the key strategic strengths of the company. All ***** these factors contribute to ***** of the greatest strengths of Starbucks, which ***** ***** brand (Henry, 56 - 59).

Weaknesses

Starbucks continues ***** struggle to gain global growth opportunities, translating their retailing expansion techniques in the U.S. into more global success. The high reliance on the U.S. market, a continued weakness of ***** *****, makes the challenges ***** ***** growth all the more urgent. With an operating loss reported in Japan, and a lack of ***** customer ***** ***** o*****r nations, Starbucks is beginning to realize that their brand alone cannot expand global *****s as it does domestically. What is necessary is a m*****e differentiated ***** strategy that centers on more localized beverages and foods, and less of a one*****size-f*****s-all product mix in international ***** (Pretorius, 21 - 28). In addition to these weaknesses, ***** is also challenged by the growing backlash a*****st the ubiquity ***** ***** br*****, especially in foreign countries.

Opportunities

*****re are many opportunities for Starbucks go*****g forward however, despite ********** weaknesses and the ***** they face. The opportunity for more effective global market expansion through the use of joint ventures, licensing, ***** wholly owned subsidiaries needs ***** be balanced against ***** r*****ks inherent in ***** approach. Starbucks needs to consider joint ***** in those ***** with

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