A revenue model, part of an overall business model, is simply the method by which the business will
sustain itself by income from customers/clients and the venues that will be used to attract business. The
revenue model should include all possible avenues of customer or client purchases and the expected
income per individual purchase.
Based on your research of the partnership between Apple and Starbucks, you need to respond to the
following items:
Item 1: Propose a supply chain diagram to illustrate the incorporation of the two companies, the musicians
that supply the music to be purchased, and the delivery to the customers. Can any part of the supply chain
be outsourced? Why would this be a good or bad idea? Justify your answer in terms of cost. What other
technologies and companies are involved in this exchange given that Starbucks does not provide its own
wireless service? You need to cover this item in 2 pages.
Item 2: Construct a revenue model diagram for the purchase of songs played at the Starbucks location.
What revenue will be gained by Apple and what revenue will be gained by Starbucks in this partnership?
Suggest at least two other partners aside from coffee shops that may benefit from a similar partnership
with Apple in terms of location-based usage. How would this mutually benefit both partners? You need to
cover this item in 2 pages
Sample Solution