Starbucks Backward Vertical Integration
Starbuck is implementing a strategy of backward vertical integration, they direct purchase bean from coffee grower, and established company owned and operates roasting plants, warehousing and distribution facilities, and that it will able to ensure bean supply and receive it with a reasonable price. In case, Starbucks bought Evolution Fresh, which provide health juice to several retailer and company owned store, and then company built factory in California in 2013, in order to support the rollout of Evolution Fresh products into market.
Starbuck is also implementing forward integration through build company owned store that sell main of drink, food and coffee beans, appliance and accessories. In case, Starbucks were sales of coffee through owned 1325 retail store and joint ventures, and issue licensed stores that distribute Starbucks’ product in new channels. And then, they have sales of coffee through 10 West Coast supermarkets in US, and plan to expand 4000 grocery stores into mass market channels. …show more content…
There are product diversification, geographic market diversification strategy and product market diversification strategy. Product diversification strategy is refer to firm to operate in multiple industries, and geographic market diversification strategy is refer to firm operate in multiple geographic market, and a firm implement both type of these two strategies is identify to a product market diversification strategy. (Ref 1) Furthermore, there are five type of diversification, that the way of characterizing what level of corporate diversification is focus on the related business by firm. It’s including single business limited diversification, dominant business limited diversification, related constrained diversification, related linked diversification and unrelated
Starbuck is also implementing forward integration through build company owned store that sell main of drink, food and coffee beans, appliance and accessories. In case, Starbucks were sales of coffee through owned 1325 retail store and joint ventures, and issue licensed stores that distribute Starbucks’ product in new channels. And then, they have sales of coffee through 10 West Coast supermarkets in US, and plan to expand 4000 grocery stores into mass market channels. …show more content…
There are product diversification, geographic market diversification strategy and product market diversification strategy. Product diversification strategy is refer to firm to operate in multiple industries, and geographic market diversification strategy is refer to firm operate in multiple geographic market, and a firm implement both type of these two strategies is identify to a product market diversification strategy. (Ref 1) Furthermore, there are five type of diversification, that the way of characterizing what level of corporate diversification is focus on the related business by firm. It’s including single business limited diversification, dominant business limited diversification, related constrained diversification, related linked diversification and unrelated