Essay about Starbucks Business Model

7537 Words May 31st, 2012 31 Pages
2011
Starbucks Business Model
Entrepreneurial Marketing

Christi Gisca, Andy Negus, Charlotte Smith & Grace Waite

Table of Contents
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Introduction .................................................................................................................................... 3 Background Analysis ....................................................................................................................... 3 Business Model Framework ............................................................................................................ 4 Value Creation................................................................................................................................. 5
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Research has shown that customers who visit the store feel that the time they spend queuing, ordering and waiting for beverages is acting in detriment to their experience with the organisation. (appendix 5, 6 & 7)
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Datamontitor (2010) Company spotlight: Starbucks MarketWatch: Drinks, March 2010, Vol. 9 Issue 3, p29-34

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2.5 It has therefore been proposed that a new business model is to be introduced in order to facilitate the ordering process and improve customer experience, whilst still preserving an entrepreneurial approach that the company has always maintained.

3. Business Model Framework
3.1 Schindehutte & Allen (2009) developed a framework in order to define the core competencies of a business model from an entrepreneurial perspective, consisting of six key components. This framework will be applied to the proposed business model in order to ensure that an entrepreneurial approach is taken towards the new venture, in keeping with Starbucks current approach to business. These competencies will then be expanded upon, taking into consideration three levels; foundation, propriety and rules levels, bringing focus to how value can be created in each area of competence. 3.2 The foundation level concerns the basic understandings of each component, detailing what the company proposes to do. Next, the propriety level expands on the first by defining the innovation involved in the venture, focussing on how the business model will create value in each

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