Impact and Relevance of Social Networking to Starbucks

Topics: Social network service, Social network aggregation, Social network Pages: 9 (3184 words) Published: August 16, 2012
Executive Summary
This report elaborates about the impact and relevance of social networking to Starbucks and how to cope with the issues. The types of social networking that will be discussed in this report including social media, labor union, Fairtrade Foundation and Global Campaign for Climate Action (GCCA). Social media could be an opportunity to Starbucks to do some viral marketing, community marketing, and consumer-generated marketing. This kind of social networking helps Starbucks to enlarge its customer basis and retain them. Labor union is a social networking that concern about social justice to workers. Starbucks need to aware of the worker’s petition that had been made about fairly paid, working hours, health care, and independent voice at workplace. Fairtrade Foundation is a non-profit organization that supporting commodity farmers to get a better life by maintain the fair price of commodity and help farmers with technical support. Global Campaign for Climate Action pay attention to the environment issues such as global warming. This non-profit organization created to invite people to their campaign about climate change and how to reduce the risk of global warming for better human life on earth.

Starbucks first opened in 1971, It served the world finest coffee to people in Seattle. In 1990, Starbucks expanded its market to United Stated and after that became worldwide. In 2000, Starbucks has more than 16,000 stores in 48 countries. Starbucks has principles: coffee, partners, customers, stores, neighborhoods, and shareholder. These principles attached in daily life of Starbucks. This report tries to analyze and elaborate the impact of social networking to Starbucks. Social networking is a group of people who are connected through community such as schools, colleagues, or workplace. People who involved in social networking are shares the same interest about something they mutually like. The main part of this report will be discussing about social networking (social media, labor union, Fairtrade Foundation community, and Global Campaign Climate for Action community) and their impact to Starbucks. 2.Discussion

A.Social Media
Social media is a part of social networking, the examples of social media are Facebook, Twitter, Myspace, and Linkedin. Social media used by people around the world to stay connected and share the same interest through online social networking. According to Boyd and Elliot (2007), the first social network site launched in 1997, It helps people to create profile, connect and send message to others. Friendster existed in 2002 following by Linkedin and Myspace in 2003. On the other hand, Facebook and Twitter dominated the social media world for the last 6 years. This figure below shows about the development of social media based on the launch date.

Social media leads to some activities which a lot of information is shared by people and they exchange information rapidly. This exchange will enhanced the perceived value by consumers. Beside value from consumers, information exchange can build customer loyalty as well. As Anandya (2010) stated that the raising of internet gives space that called cyberspace for people to interact with each others. The information exchange may affect significantly to customer loyalty. Starbucks can use the social media to interact with its customers. Social media now record for 23 percent of advertising (Tucker, 2010). Advertising through social media can be use to deliver some message from the company to customers. Social media commonly employ several types of word-of-mouth marketing include: viral marketing, referral program, and community marketing. Company can try to build customer experience by implementing viral marketing. The rapid growth of online users makes information spread quickly among customers. Besides viral marketing, Starbucks can use community marketing to form and support niche...
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