Question

Discuss Starbucks Business Model, its uniqueness, and why? How does Starbucks create value and sustain it long term?

Answer 1

Starbucks has a different business model when we compare it to other similar business in the sense that it aims to create brand loyalty rather than spending a huge amount to budget on advertisements. They create value in their business through the use of customer interaction. Their business model aims to create brand loyalty, they provide services which allow the customers to stay longer at their center and hence drive a business based on this factor. It is different from the business model of companies like McDonald's and KFC in the sense that their main focus is franchising and product variation while Starbucks aims to create loyal customers and brand value.

They utilize this model as a factor which differentiates them from the competition and allows them to sustain their services that the customers love and require. Their model is simple yet effective and has made Starbucks a regular name in the market.