The value chain analysis enables an organization to identify areas of strength and weakness, reduce costs, and create competitive advantages.
Starbucks utilizes direct grower contact and local suppliers for high-quality raw materials (Inbound Logistics). The company operates roasting plants, innovates its menu, and enhances store ambiance for consistency and quality (Operations). Through owned stores, licensed outlets, and partnerships, including a rewards program and a mobile app, Starbucks streamlines purchasing for customers (Outbound Logistics). Significant investments in product quality, customer service, and effective use of social media characterize Starbucks' marketing strategy (Marketing & Sales).
Starbucks provides excellent customer service, including free Wi-Fi and a customer-friendly return policy (Service). With a strong organizational culture, efficient management, and technology investments, Starbucks maintains infrastructure (Infrastructure). Employee training, competitive benefits, and a supportive work environment are priorities in human resource management (Human Resource Management). Starbucks employs technology for in-store enhancements and supports supply chain logistics (Technology Development). Ethical sourcing through Coffee and Farmer Equity (C.A.F.E.) practices strengthen the brand image and ensure high-quality beans (Procurement).
Through the application of the value chain, Starbucks creates superior customer value, allowing them to differentiate themselves from competitors and command higher prices.
