Application of the Canvas model to the international company Starbucks
Introduction
Starbucks is a company that is dedicated to the sale of made coffee, hot drinks and snacks, it is one of the largest in the world, this company managed to revolutionize and completely change coffee stores.
The company was founded in 1971, has evolved over the years and has managed to take possession worldwide, expanding with its own stores and some franchises.
In this work we will carry out an analysis of the company, its history and evolution over the years, analyzing the reason it has been successful in the coffee market and we will apply the Canvas model to its current business management.
Starb UCKs has reached total success in the coffee consumption market, achieving an expansion by all the world and has been accepted in all countries that venture with the opening of a store, since in each case it enters adapting to its market and his culture.
Canvas Model
Definition of the Canvas Model
The Canvas model was created by Alexander Osterwalder. Canvas, means canvas or canvas. According to Janire Carazo Mayor in his publication on the Economipedia website on the Canvas model, he defines it as: ‘The Canvas model is the tool to analyze and create simplified management models. It is visible globally on a canvas divided into the main aspects that involve business and revolve around the value proposal offered ’, (paragraph 1)
What is the Canvas model for
The Canvas model is simple, nothing complicated and very easy to learn, it also makes everyone in the organization speak the same language, analyze the key points and achieve the proposed objectives. This model allows you to see in a single sheet (canvas) all the important areas of an organization (customers, offer, infrastructure, costs and income flow), divide the organization into 9 blocks and thus allows the entire company to work under strategies For each block integrating as a whole business, also providing several approaches so that decision making is not made improvisedly.
As I have previously indicated this model is composed of 9 blocks, which I will detail in general below:
- Customer segment: It should be identified that customers will be served, identifying the needs of each group of clients to focus the strategies to reach this previously identified market niche.
- Value proposal: Identify what is the value proposition that the company has in front of the competition, which will offer customers differentiated so that customers are attracted to their offer. The value is not only added to the product but in all the advantages that the customer can experience.
- Communication and distribution channels: the channels are the means by which you will distribute or communicate your product or service. It must be established what will be the most appropriate way to reach your target market. They can be physical or digital, which is more suitable for your product or service.
- Customer relationships: the relationship with customers is a very important issue that should be considered and clearly established, a communication strategy must be defined either directly or through some digital medium or call center.
- Key resources: Identify all resources that are of vital importance for the business to work, these can be: Human Resources: Professional Business staff so that the product reaches the target market; Economic resources: investment that needs the business starting and developing; Material resources: all types of material and equipment to develop the business and that the product or service reaches customers.
- KEY ACTIVITIES: These are all the activities, tasks and processes that must be carried out to make the product or service reach the client of the target market.
- Key partners: Analyze strategic alliances with suppliers and/or distributors to achieve the best results in the delivery of the product or service.
- Cost structure: The main objective is to obtain favorable results therefore the cost structure that is adopted must be the most appropriate for the business and for its partners.
Starbucks analysis
History of the company
If we think of Starbucks we always think of satisfaction, we are not only going for a cup of coffee but we always expect personalized attention in an ideal place.
In 1971 in Seattle, the United States opened the first Starbucks store, there were three partners, Jerry Baldwin, Zev Siegel and Gordon Bowker and his name was inspired by the famous novel ‘Mobby Dick’. The store was initially dedicated to selling coffee beans and coffee machines.
In 1982 the businessman Howard Schultz joined as a company partner and was the one who proposed that an extension of the store selling express coffee and others be generated, however this did not have the acceptance of the other partners that is why Schultz in The year 1985 opens its own store, however a short time later the other partners decide to sell the Starbucks store to Schultz.
In 1992 the company began to quote on the stock market, achieving the success that its owner expected, maintaining a growth in the shares until approximately 2006.
In 1996 he opened his first store in another country (Tokyo) and began a strategy to internationalize with strategic partners throughout the world.
The company had an economic crisis in 2008, which was one of the strongest for which it crossed and, it forces its owner to make decisions to establish strategies that help him overcome it, some stores were closed and his entire personnel trained to face a new era of stores and this was reflected in their results and meant an extension to several countries.
Currently, the Starbucks company has approximately 31.000 stores throughout the world, between their own and franchisees.
The stores offer a number of products among them:
- coffee that can be express type, with milk, stained, stained with caramel, and can also be frozen coffee
- tea, which can be full sheet, with milk and can also be ice tea
- Frapuccino, the same that was created by Starbucks and is a brand recorded by them and can be of coffee flavors, caramel, mocca, dulce de leche
- sodas that are based on fruits
- snacks can be sandches, muffins, cakes.
CANVAS MODEL APPLICATION
I must record that I am from Ecuador and in this country there are no Starbucks stores that is why we will apply the model to the business as such established in the United States.
Analyzing the business strategy that the Starbucks company has had over the years is very enriching, since this company has managed to take possession in the coffee market earning its customers’ heart not only because of the excellent products it offers but also by The attention provided and the good atmosphere you keep in your stores.
Once an analysis of the business model that Starbucks has implemented over the years has been carried out, we will start with the Canvas model with its 9 blocks to make clear the strategies that this company has:
Customer segments
As indicated above at this point we must establish that customer sector will go the business, who will be our most important customers? And to whom we consider that our product offer would meet their needs, in the proposed case and once it has been investigated on the Starbucks business we can segment as follows:
- Male and female gender
- Ages: No age range
- Interests: coffee lovers, enjoy a good atmosphere to consume it
Value proposal
The value proposal is what we will differentiate from the competition, which is what we are going to offer so that customers are faithful to the brand, in the case of Starbucks their value proposition focuses on: creating a unique experience and Special to all its customers, providing the best coffee and other products with high quality standards, in a place that you want to call your ‘third house’ where you can feel comfortable and comfortable doing your studies or work.
Communication and distribution channels
The communication and distribution channels are the means that allow us This one performs the purchase process. Focusing on the case of Starbucks, currently this company its main channels are the establishments that it has in more than 65 countries throughout the world, they also establish relationships with third parties such as airports, shops, hotels, and in this way they can reach more customers without these should look for a Starbucks cafeteria.
Relationships with customers
The relationship with customers is very important, the communication strategy must be clear and adapt in the best way to the client. In the proposed case, we can establish that the company has a direct communication strategy with the client, it focuses on giving them the best possible attention, having trained collaborators to understand that the client is the most important thing, that they must feel at home, they perform Personalized attention when asking the name and writing it in your glass. In addition, it also handles a rewards plan that encourage its customers to return, since for each consumption they give it stars that in the future they can exchange them with store products, this strategy makes the client become faithful and prefer to consume in Starbucks before In competition.
Key resources
These resources are those that help generate the value proposition to be delivered to the client, being of different types, human, financial and material. In the case of Starbucks a key resource in business development and for the delivery of the value proposal is the human personnel that it has, highly trained with high job stability and always recognized for its work developed; Another key resource is the knowledge of the business and the experience gained over the years, not everything has been successful but has managed to stay in the market and has managed to have a brand recognized by many especially in the United States and gradually has been possessing throughout the world. And, in the end, determine financial and material resources, which without the financial issue could not continue to continue, however, having the business being profitable over the years has been able to achieve that world expansion either with its own businesses or with the sale of franchises and also material resources such as coffee machines, so important for the business to develop normally.
Key activities
Key activities are important actions or tasks for the business to be developed successfully, so they must be analyzed and differentiated what these are in the best way, so that they can always be developed with priority and responsibility. I will analyze the ones I consider are the most important in the case of Starbucks:
The selection of suppliers, carried out very effectively makes many demands to them and it is for this reason that it has responsible suppliers, with high quality standards and committed to the company, in this way it can provide the best quality in its product and develop the value proposal you want to provide to your client.
The selection of employees, as I indicated previously the personnel working in the company are highly committed and its delivery and fidelity to customer service is essential, that is why this selection is a key activity for selected people to be framed In the profile that the company wants to maintain for its value proposition to be delivered and developed in the most successful way possible.
The commercialization of its products is not something that is taken lightly, always does it as a key activity to reach the final customer, it has currently established strategic alliances to be able to reach the client more easily.
Key partners
It is the network of suppliers or strategic partners to boost the business and that goes ahead successfully.
When companies are associated with strategic alliances, in the case of Starbucks they have allies in their suppliers, always seeks that they cultivate the best coffee beans, create awareness in them and provide confidence, always encouraging communities to get involved in the issue of coffee cultivation and that minority groups are part of these.
On the business issue, they make alliances with airports, hotels, supermarkets and stores, to market their products always thinking about what the customer needs and always being able to be available to everyone.
In the proposed case, it also indicates that it will be allied with Nestle and form a global alliance with the marketing, sale and distribution of the coffees and teas of Starbucks in the world, two major businesses come together strategically to increase their participation in the market and get to many more consumers.
Another key partner of Starbucks is Spotify, the streaming music service, therefore being Starbucks a cafeteria that has always been classified by its good music will provide with this alliance that Starbucks consumers who have the Spotify app can download the list of Musical reproduction that sounds in the store that is found and save it, also suggest some song that I would like to hear in Starbucks stores.
Cost structure
And once all the key and important business points have been analyzed, we must establish the cost structure that will be needed to start the business, if the needs of all the above detailed are clearly established we can have a clear vision of the way of costing.
In the case of Starbucks, coffee machinery, the payment of suppliers, the payment of salaries, expenses in materials, rental of spaces for the premises, marketing campaigns, expenses in services, expenses in services,.
It is important to highlight that the company has a high level of income because it is a company well possessed in the market and have a high demand for consumption, it is for this reason that they have a income flow.
Conclusions
- Starbucks is a company that is dedicated to the sale of coffee and other drinks, it currently has approximately 31.000 stores throughout the world between their own and franchisees, works hard training all its staff so that in this way the client with a personalized service, so the client feels pleased; It also maintains the strategy that its stores are the third home in this way performs campaigns so that the client feels comfortable and comfortable in each store and can do their work, studies and others as if they were home, with free internet and free internet and A cozy place.
- The Canvas model is a very useful tool to create a business analysis models in a simple and simple way, a canvas is used to establish strategic points and obtain different perspectives to analyze a business and be able to make decisions in an integral way and can consider On the canvas issues such as: sales, marketing, market and financial issues in terms of costs and income.
- The value proposition that has been analyzed in the case of the Starbucks company is a great issue since the company has well established that its reason for being are customers and that is why it provides quality products, personalized attention and An ideal atmosphere to consume your products.
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