Extensive Business Model of Starbucks

Explore the Starbucks business model in this comprehensive case study. Understand how Starbucks’ innovative approach to coffee culture drives its global success and market leadership.

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Aditya Shastri - Trainer at IIDE

Aditya Shastri

Lead Trainer & Business Development Head at IIDE

Updated on: Aug 16, 2024

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Frequently Asked Questions

Starbucks' business model focuses on offering high-quality coffee and beverages through a global network of retail stores, with additional revenue from packaged goods and licensing.
Starbucks makes money through direct sales of beverages, food items, and merchandise in its stores, as well as from packaged coffee and tea products, licensing fees, and the Starbucks Rewards programme.
Starbucks’ main products include coffee beverages, teas, pastries, snacks, whole bean coffee, VIA instant coffee, and merchandise like mugs and tumblers.
Starbucks’ top competitors include Dunkin' Donuts, McCafé, Costa Coffee, Tim Hortons, and Peet’s Coffee.
Starbucks uses technology for personalised recommendations, mobile ordering, digital payments, and inventory management, enhancing customer convenience and operational efficiency.
The Starbucks target audience includes young adults, professionals, coffee enthusiasts, students, and remote workers who value quality and convenience.
Starbucks holds approximately 40% of the US coffee market and about 6% of the global coffeehouse market.
Starbucks’ CSR initiatives focus on sustainability, ethical sourcing, community support, diversity, and inclusion, aiming for 100% ethically sourced coffee by 2025.
The value proposition of Starbucks is high-quality, ethically sourced coffee, personalised experiences, and a welcoming store environment.
Starbucks markets its products through traditional advertising, digital marketing, social media engagement, seasonal promotions, and loyalty programmes like Starbucks Rewards.

Author's Note:

I’m Aditya Shastri, and this case study has been created with the support of my students from IIDE's digital marketing courses.

The practical assignments, case studies, and simulations completed by the students in these courses have been crucial in shaping the insights presented here.

If you found this case study helpful, feel free to leave a comment below.

Aditya Shastri - Trainer at IIDE

Aditya Shastri

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Lead Trainer & Business Development Head at IIDE

Aditya Shastri leads the Business Development segment at IIDE and is a seasoned Content Marketing expert. With over a decade of experience, Aditya has trained more than 20,000 students and professionals in digital marketing, collaborating with prestigious institutions and corporations such as Jet Airways, Godrej Professionals, Pfizer, Mahindra Group, Publicis Worldwide, and many others. His ability to simplify complex marketing concepts, combined with his engaging teaching style, has earned him widespread admiration from students and professionals alike.

Aditya has spearheaded IIDE’s B2B growth, forging partnerships with over 40 higher education institutions across India to upskill students in digital marketing and business skills. As a visiting faculty member at top institutions like IIT Bhilai, Mithibai College, Amity University, and SRCC, he continues to influence the next generation of marketers.

Apart from his marketing expertise, Aditya is also a spiritual speaker, often traveling internationally to share insights on spirituality. His unique blend of digital marketing proficiency and spiritual wisdom makes him a highly respected figure in both fields.