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Starbucks' Value Chain Analysis

Starbuck's Value Chain *****

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 *****ir product, marketing and sales, ***** 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 (P*****ter, Millar, 149).

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

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

SWOT Analysis


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 these three core *****s of the company are. What also has emerged as a key competitive differentiator ***** the ***** ***** the speed at which Starbucks can create new products. Their ne product *****ment process that is global in scope, tak*****g into account seasonal variations in each hem*****phere, is also one ***** the key strategic strengths of the company. All ***** these factors contribute to one of the greatest strengths of Starbucks, which is their brand (Henry, 56 - 59).


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


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


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