Starbucks mission is a visionary statement that outlines the company’s objectives as follows: “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks, 2013). The company’s values include quality, passion, fully engaging customers, humanity and enjoyment of life, setting the standard for being good neighbors, and accountability (Starbucks, 2013). Starbucks currently sets the standard in one market sector: whole bean coffee distribution within the United States. However, as Team A consultants identified, the company jeopardizes its frontrunner industry position by not expanding. Team A consultants discussed two primary expansion opportunities, specifically expansion of the company’s product portfolio and expansion of the company’s primary product, coffee, into foreign markets. Although both expansion options provide great competitive advantage for Starbucks, expansion into strategic foreign markets provides the most opportunity for competitive advantage and is most aligned with the company’s values as it enables the company to set standards in new industry sectors and broaden the neighborhoods in which it serves.…
The purpose of this paper is to write an essay about Starbucks global expansion strategy with a focus on China. Starbucks first went international in 1996 in Tokyo Japan; today there are over three thousand coffeehouses in thirty-seven different countries. “The number one priority of our company in terms of new growth is China,” said Howard Schultz, chairman of the coffee chain. “The US company has two hundred and nine stores across eighteen mainland Chinese cities, about one hundred and twenty of which lie in the capital or around Shanghai” Andrew Yeh wrote. Compared to the six hundred coffee shops in Japan Starbucks is behind in growth for China. With China’s emerging economy and booming population it is a no-brainer that a rapid expansion into China would be a great business opportunity.…
Neumayr, Tom. Apple Press Info. Wirelessly fing and Buy Music at Starbucks. Retrieved from http://www.apple.com/pr/library/2007/09/05Apple-and-Starbucks-Announce-Music-Partnership.html…
Starbucks and Dunkin Donuts are well-established coffee restaurants that offer world-class range of coffee. Starbucks has uniquely brewed caffeine-free coffee and targets typically the noble people. Starbucks’ ambiance is classy with free WI-FI that allows customers to connect as they indulge in the cafe. Dunkin Donuts offers a variety of pastry and coffee to the customers at reasonably low prices. Between 3 and 6 pm they offer discounts to their customers. The two coffee shops introduce new recipes regularly, and that makes the experience interesting for the customers.…
In the text the author tries to explain how Starbucks gets one of the global brands by entering new market. As one of the fastest-growing brands in the world, the Coffee chain is well known around the globe. The company tries to be very innovative, as they invented the Starbucks card and a pre-order via phone or internet. Nevertheless, they have to focus on a problem, since it is difficult to attract the next generation in the United States. The author criticizes the workload in the stores, but accentuates the positive working conditions compared to other companies. It is also mentioned, that Starbucks is very successful overseas, because it is still new and trendy over there. But for all that they have to consider cultural challenges and competitors.…
By now, most Americans must have heard or be familiar with a chain of coffeehouses, named Starbucks. Established in 1971 as a local coffee bean roaster and retailer, Starbucks has expanded rapidly. By successfully adopting Italian coffee culture into a variety of beverages such as brewed coffee, espresso, teas, Frappuccinos and related products such as music CDs, pastries or ice creams, the Seattle-based company has reported USD 7.9 billion in revenue with 22 percent annual growth (Starbucks, 2006) . Operating 13,168 stores in 41 countries, Starbucks has, inarguably, become one of the largest and most recognizable coffeehouses all over the world (Harrison & Enz, 2005). Meanwhile, the company still targets for operating 30,000 stores worldwide in long-term growth (ibid.). Among numbers of destinations, China is Starbucks’ next target. Opening its first store in 1999, Starbucks is running 540 stores in China, including Taiwan, Hong Kong and Macau (ibid). Although China currently accounted for less than 10 percent of Starbucks’ USD 7.9 billions global sales in 2006, Starbucks’ CEO Howard Schultz believes that the country will soon become the firm’s largest market outside North America (Asia Pulse, 2006). EuroMonitor (2004) showed that Starbucks’ unit sales have jumped dramatically by 814 percent between 1999 and 2003. Despite of its market attractiveness, China can also be a pitfall for any organization. Eight years after opening, Kraft, a multi national food company has been forced to close its dairy-making business. Similarly, Whirlpool has reported to have lost £26 million since its investment to China (Jobber, 2007). Commonly quoted reasons for failure are the inability to cope with diversity, changes or differences in culture, local law, regulations or in other words, failing to adapt to the external marketing environment. Thus, the purpose of this study is to evaluate the influences of the current external environment on Starbucks’ marketing management…
Strategic Problem: How can Starbucks Coffee Corporation continue to provide exceptional employee benefits package while…
Walk several blocks in almost any city in America and you’ll pass at least one Starbucks, if not more. And the same is true for most cities outside of the United States. The Starbucks empire has grown to 6,000 U.S. outlets and about 2,500 international locations.…
Each country in which a company operates represents a unique environment with a different set of economic, technological, political, and sociocultural variables for the company to face. What seems to be the problem with Starbucks is that its international expansion policy was too aggressive and did not really take into account the differences between countries. Around the world, Starbucks is not sensitive to the feelings and demands of the local people who are the actual customers. The company’s belief that what works in America will also work in other countries of the world, is not correct just because people want to experience the American lifestyle.…
1. What factors accounted for Starbucks’ extraordinary success in the early 1990’s? What was so compelling about the Starbucks’ value proposition? What brand image did Starbucks develop during this period? Is the value proposition still valid in 2002?…
Introduction This short memo 's goal is to provide some strategic advices regarding the future of Starbucks ' internationalization. The following analysis will be divided in two main parts. First part will focus on a qualitative approach based mostly on “Resuming internationalization at Starbucks” from Richard Ivey School of Business, annual reports, several articles found mainly on Starbucks ' news internet site, and a few other readings found on the Internet. Second part will focus on a quantitative approach, based on pure data analysis, to try to provide some hints about where Starbucks could expand. This part was made with public available data (WorldBank, OECD, ICO), and shall miss some real data from Starbucks, such as exact list of countries, entry modes and market/strategic analysis about the countries. Qualitative Study Over the 24 regions of the world, Starbucks has stores in 18 of them. If we get rid of the African continent, in which Starbucks exist in only 2 of its 6 regions, 2 regions are then only missing : Central Asia (all -stan countries), that can be explained by political problems and market opportunities, and Southern Europe, which will be covered in the quantitative part. That allows Starbucks to exist in 31.55% of the world 's countries, reaching then 72.52% of the earth 's population. Annex 1 shows the number of new countries reached per year, with the Return On Asset. If we get rid of the economic crisis, it shows that Starbucks needs to expand in 2 to 3 new countries per year, as reaching too many countries seems to have a bad impact on ROA, as maybe investments are too important for a single year. If we take a closer look at the number of stores…
With the expansions to foreign markets Starbucks has been met with many uncontrollable elements, most of which is anticipated by marketers and can be met head on and worked out by using controllable elements. Expanding to any foreign market is a complicated task, let alone to do it on such a mass level as Starbucks has, and in such a short amount of time. They are now taking up market shares in 44 different countries (if not more), and doing so with an average profit of thirty percent each year. While the uncontrollable elements the corporation has faced are diverse depending on the country in which you are analyzing, they share allot of similar characteristics. Some of the uncontrollable elements found in different countries that Starbucks inhabits are listed below, along with the controllable elements that can be used to solve them:…
1. INTRODUCTION Starbucks Coffee International, a subsidiary of Starbucks Coffee Company, recently celebrated its first step into southern China by opening a new store in the country, the first one in Shenzhen. The store is owned by Coffee Concepts, a joint venture between Starbucks and Hong Kong s Maxim Group, who together opened 32 Starbucks in Hong Kong between 2000 and 2002. Starbucks success in Asia has surprised many people. But the executives at Starbucks have been surprising critics for many years. How did a small coffee company from Seattle with…
By 1995 Starbucks had great success with 700 stores in the U.S. and they wanted the same success around the world. Their idea was to use the same strategy they used in the U.S. and use it in Japan. With the world going towards globalization coupled with the success in Japan triggered Starbucks to go aggressive in the global market. Starbucks had to gain global market shares, if they wanted to be world leaders in the coffee market. By gaining global market shares, not only would it add value to Starbucks as a whole but also add value to the shareholders. By going international, a firm is moving towards globalization which in turn will increase market share if done correctly.…
【Abstract】This paper will start from the controllable and uncontrollable elements that Starbucks faces in its global marketing and expansion. These elements are unavoidable that any multinational companies should deeply consider when entering the other countries and occupying the new market shares, Starbucks is no exception. In the second part of this paper, the analysis of its risks and the pros and cons of its corporate strategy will be discussed and the outcome can give many lessons for Starbucks’ further development, especially in Japan, which this paper will talk about in the last part. Through this case study, this paper tries to show the proper marketing strategies of Starbucks and aims to give a good example for other multinational companies.…