Pivot Assignment: Starbucks Business Model Innovation

Pivot Assignment

My assignment will be based around the company Starbucks.

The main objective of this assignment is to become familiar with a specific business model innovation (pivot) that is well known in the public domain and to show clear analysis and presentation of the key factors of success (or failure) but in this case was a success.

What does pivot mean in Business?

-A pivot is a substantive change to one or more of the 9 business model canvas components.

Company Background

Starbucks opened its first store in 1971 in Seattle’s Pike Place Market and today is the largest coffee house chain in the world with nearly 18,000 stores in 60 countries. The logo is inspired by the sea -featuring a twin-tailed siren from Greek mythology

For Starbucks currently their main customers are students, people between 25-40 and then young adults between 18 and 24. I would say the main reason they aim at people of these ages is because they are the most active for long hours throughout the day that are stressed and need a coffee or some form of hot drink to waking them up and keep them awake for their activities.

Value Proposition

As it says in the business model canvas above, their mission was to “Inspire and nurture the human spirit- one person at a time one neighbourhood at a time”. In 2011 they released a statement saying that they believe it is no longer enough to serve customers, employees, and shareholders. They also believe it is their duty to serve the communities in which they do business in so that they help improve the quality of education, employment, safety and future prospects etc. Their overall mission is to transform the role that businesses will play in society by acting as a government instead of a sole entity. They will do this by promoting small businesses in their area which will support their

Their location is very important as many people would love a coffee on their way to work or library so that’s why you will most likely see a Starbucks on the corner of the street beside your workplace. Their coffee making skills has to be good because if it’s not then people aren’t going to go in just for the sweet treats. The furniture has to be fitting towards what type of business it is. Free internet is a massive plus because of business people that are sitting in or even teenagers will like to surf the web or check their emails before work.

Key Activities

Key activities represents what you need to make this store function properly, which is hire good staff, long hours of work, maintain space around the store and don’t keep customers waiting.

Key Partners

They don’t need much help outside of their workplace they just need the coffee suppliers to bring the beans in and the other small businesses in the community to supply them their own goods.

Cost Structure

They don’t have many costs to pay for because they supply their own beans and the small businesses come to them. So they only have to pay the employees they hired, the marketing research to improve their products and pay for renting the building their