Starbuck Value Chain

Value Chain Analysis

Inbound Logistic

1. Farm : Coffee Bean begins at the farm on coffee trees. After trees are planted, it takes between one and three years for the trees to bear coffee “cherries”. Than the farmer will harvest the coffee trees to get cherries. After that, they will use coffee mills to process the product from cherry to bean.

2. Exporter : The coffee export process varied greatly depending on origin country and buyer. In some countries, beans were exported through government coffee boards while other countries used private exporters only.

3. Broker : The broker is the one who import the coffee bean. After the beans were shipped to the import country, it was visually inspected and test-tasted for quality through a process called “cupping”. After passing inspection, coffee was stored in warehouses or shipped to roasting warehouse.

Operation

1. Roasting warehouse : When the coffee beans reach to the roasting warehouse, the beans are roasted until they receive their characteristic color and aroma and then cooled. Once the beans are cooled, it will blend beans from different countries to balance the flavors and strengths.

2. Packaging manufacture : This is where the place to do the packaging for the coffee beans.

Outbound Logistic

There have 3 ways the starbuck product can reach to the customer:

1. Retail business organization : The starbuck runs all of the retail stores by its own. The customer can drink the fresh and high quality coffee at their retails stores.

2. Specialty sales and marketing : Under this area, it was sell their product to major restaurants, United Airlines and other specialty accounts that do not fall under the retail business customer.

3. Direct response : This area is handling all the order from the internet or the mails.

Marketing and Sales

The Starbuck already have the Brand name. The marketing strategy they focus on is to sell the lifestyle, experience and not only the product itself. Beside that, they make the starbuck store become the “third place” between home and work.

Service

At the starbuck store, they provide the extra services that allow the customer to buy the CD which the CD content can be customized based on the customer needs. Beside that, they also provide the internet service to allow the customer to surfing net in their store.

Firm Infrastructure

The Starbuck Corporation has a mission statement that guides how their organization should functions:

• Embrace diversity as an essential component in the way they do business.