Starbucks - Business Strategy and the Customer Value Proposition.

1119 Words5 Pages
ABSTRACT Business Strategy and the customer value proposition for the world largest Coffee house. Thomas Hild CMA Accelerated Program – Strategic Management STARBUCKS May 2, 2013 The intention of this report is to review Starbucks Corporation’s the business strategy through the customer value proposition and risks to financial results and reporting. Starbucks operates in 61 countries as a roaster, marketer and retailer of coffee. The Company purchases and roasts coffees that it sells, along with handcrafted coffee, tea and other beverages and a variety of fresh food items, through Company-operated stores. It also sells a variety of coffee and tea products and licenses its trademarks through their Channel Development segmentation. As of September 30, 2012, it operated 9,405 Company-operated stores and 8,661 licensed stores. It has four segments (% of gross revenue): Americas (75%); Europe, Middle East and Africa EMEA (9%); China/Asia Pacific CAP (5%), and Channel Development (10%). (The New York Times, 2012) (Starbukcs Corporation, 2012) The business strategy of differentiation is exhibited through delivering consistence quality products and exceptional customer experience at a typically higher than average cost to customers. Customer value proposition is leveraged around serving the coffee experience into everyday lives. Quality Coffee, great service and atmosphere combine for a completing value proposition. Working directly with growers to purchase green coffee beans, overseeing the custom-roasting process, and controlled distribution ensure a quality product. While extensive training confirms excellent customer service, clean and well-maintained worldwide stores that reflect the personalities of each community, thus building a high degree of customer loyalty. (Starbukcs Corporation, 2012) In 2010 Starbucks declared a dividend for the first time and key

More about Starbucks - Business Strategy and the Customer Value Proposition.

Open Document