In: Business and Management

Submitted By parani
Words 908
Pages 4
Bargaining power of suppliers
Because of rapid growth in coffee industry the bargaining power of suppliers increased compare to 1980's. In the past farmers were not connected to each other so their bargaining power was low. Today majority of farmers are connected to each other by an initiative know as Fair Trade Certified Coffee which is designed by Transfair US. The purpose of this initiative is to ensure that farmers will get reasonable return on their crops and we can say suppliers are powerful today. But Starbucks has already made a long term contract with some of suppliers so supplier bargaining power will be less effective for Starbucks. In starbuck their bargaining power of suppliers is low because Starbuck already control as much of the supply chain as possible in market. Starbuck get highest-quality coffee in world, that sourced from the Africa, Central and South America and Asia- Pacific regions. It is because Starbuck have various suppliers so that they can negotiate with a reasonable price. Starbuck tak perlu resau tentang utk mdpt bekalan bahan mentah, jika salah satu supplier mereka tidak mau membekalkanya.ini adalah kerana starbuck mempunyai pilihan lainh utk suppy mereka bmentah.

Product innovation
New products were launched on a regular basis for example, Starbucks introduced at least one new hot beverage every holiday season, but its seems not meet their customers satisfaction. Refer to Exhibit 10, customers that satisfied with new and innovation beverages only shows 2nd last lowest percentage that is 13%. Its shows that customers not interested with new product innovation. The new product development process generally operated on a 12 – to- 18 month cycle, during which the internal research and development ( R&D) team tinkered with product formulations, ran focus group, and conducted in-store experiments and market tests this is…...

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