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Starbucks' Value Chain Analysis

Starbuck's Value Chain Analysis

In analyzing the structure and performance of Starbuck's Value Chain, an analysis of the company's strengths, weaknesses, opportunities and threats have been completed, followed by an assessment of their product, marketing *****d 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***** ***** a company coordinate and synchronize with each o*****r to accomplish their strategic objectives (Porter, Millar, 149).

Figure 1: *****'s Value Chain Model (Porter, Millar, *****49)

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

SWOT *****


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


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


***** are many opportunities for Starbucks going *****ward however, despite *****ir ***** and the threats they face. The opportunity for more effective global market expansion through the use of joint ventures, licensing, and wholly owned subsidiaries needs to be balanced against ***** risks inherent in ***** approach. Starbucks ***** to consider joint ventures in those ***** with


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