Contents

• Introduction 4
• Purpose of Value Chain Analysis 4
• Advantages and Disadvantages of Value Chain Analysis 4
• Research 5
• Study of Starbucks Globally 5
• Porter’s Value Chain 6
• Analysis 8
• Value Chain Analysis of Starbucks 8
• Primary Activities 8
• Inbound Logistics 8
• Operations 8
• Outbound Logistics 10
• Marketing and Sales 10
• Services 11
• Supportive Activities 11
• Infrastructure 11
• Human Resource Management 11
• Technology Development 11
• Procurement 12
• Competitive Advantage of Starbucks 12
• Conclusion and Recommendations 14
• References 16

Description

The value chain concept was first introduced by Porter (1985) to describe the entire range of activities. Value chains are essential to bring a product or service from conception over the different phases of production, distribution to customers and final discarding after use (Zamora, 2016). It can be used as a tool to disaggregate a business into important activities, thus, permitting the identification of sources of competitive advantage. Similarly, the use of value chains and value chain analysis has been stretched to several applications beyond the study of individual companies. Value chain analysis has been employed to inspect and assess whole industries and industry clusters as well as particular systems within companies (Baig and Akhtar, 2011). Moreover, it has been engaged to inspect the activities that are increasingly spread over different countries also known as global value chain (GVC).