Critical Analysis of Company Value Chain - Essay Example

Starbucks Value Chain Analysis Over the years, Starbucks has been hailed as one of the company with an effective value chain. This has enabled the firm to improve its competitiveness in the market and retain its position despite the increasing levels of competition. Inbound Logistics Starbucks inbound logistics involves the agents that have been contracted by the company choosing coffee beans mainly in Africa and South American countries. However, the firm stores its products in its premises in order to ensure that the quality of the products is maintained (Dijk, Trienekens, & European Association of Development Research and Training Institutes 2012).

The firm has communicated the standards required, an aspect that has improved the strategic relationship with the suppliers. OperationsStarbucks operations are undertaken in more than 65 countries across the world. According to the company’s profile, there are 8870 subsidiaries that are operated by the company across the world. Moreover, there are approximately 8000 stores that have been licensed to operate on behalf of the company.Outbound LogisticsStarbucks’ outbound logistics involves selling products through its stores without the use of the intermediaries.

However, currently, some of the company products are being sold through various leading supermarkets in the country. Marketing and SalesStarbucks, mainly depend on the word-of-mouth to market its products and services. This is achieved through provision of high quality products that meets the tastes and preferences of the target market (Dijk, Trienekens, & European Association of Development Research and Training Institutes 2012). Nevertheless, in some cases, the company gives prospecting customers an opportunity to sample the products.

Furthermore, the company uses audio, visual, and print media in order to reach the target market. This plays a significant role in attracting the customers towards the company’s products. ServicesThe company’s main objective is driven from its mission statement. It entails providing quality and superior level customer services. Subordinates are encouraged to put more focus towards the satisfaction of the customers. This has been critical to the overall success of the company. RecommendationsStorage is one initiative that costs Starbucks a lot of money.

In many cases, the firm is forced to store excess products in anticipation for better prices. The costs of electricity, administration, and maintenance of the stores increases the overall costs of production. However, in order to reduce the costs of storage, the company can contract a logistic company to operate its stores. This is a company that has specialized in storing and distribution of the products (Dijk, Trienekens, & European Association of Development Research and Training Institutes 2012).

As a result, the firm will put up the necessary measures to increase the level of efficiency, an aspect that will play a critical role in reducing the costs of operating the stores by Starbucks. Marketing using audio, visual, and print media has become more expensive, especially with the entry of multinational companies which have a huge financial base. As a result, in order for the firm to reduce the costs of marketing its products, it should shift towards the use of social media platform. This channel will offer the company with an opportunity to interact directly with the customers (Dijk, Trienekens, & European Association of Development Research and Training Institutes 2012).

As a result, it will be easy for the company to understand the tastes and preferences of the target market and different factors that make them change their consumption behavior. Therefore, the company will make the necessary changes in order to prevent the customers from being attracted the competitors’ products in the market. ReferencesDijk, M. P., Trienekens, J., & European Association of Development Research and Training Institutes. 2012. Global value chains: Linking local producers from developing countries to international markets.

Amsterdam: Amsterdam University Press.