Business Model of Starbucks.docx – Business Model of Starbucks The Business Model Canvas, is a strategic management and entrepreneurial tool. It allows | Course Hero

Business Model of Starbucks

The Business Model Canvas, is a strategic management and entrepreneurial tool. It allows you to

describe, design, challenge, invent, and pivot your business model. In this case I have chosen the

Starbucks outlet of IOI City Mall Putrajaya and discussed their elements of business model in

detail below.

1.Value Proposition -Starbucks hires people with a sense of commitment to the

company and skills to perform their work efficiently. What this company is

transferring knowledge and passion of employees and partners to every customer in

order to improve satisfaction.

2. Client Segments – There are five types of customer segment :

i) Mass Market –

Mass market

is a market for goods produced on a large scale for a

group of significant number of

end consumers

. Mass market is the opposite of the

term

niche market

in that the first focuses on consumers with a wide variety of

backgrounds with no identifiable preferences and expectations in a large market

segment

ii) Niche Market –

A

niche market

is the subset of the market on which a

specific

product

is focused. The market niche defines as the product features aimed at

satisfying specific market needs, as well as the

price

range, production quality and

the

demographics

that is intended to impact. It is also a small

market segment