Positioning Strategy for Starbucks in the Netherlands
INTRODUCTION
As exports and imports of goods and services both account for over 60% of nominal GDP, the life-blood of Dutch prosperity is foreign trade. Because of its internally-oriented characteristics, Netherlands has the embedded culture that welcomes diversified products or services from the world, while in some other countries in the EU, for instance, France or Italy, have ultimate pride for their own culture, especially for the product that I am planning to introduce—coffee. Being an everyday coffee-drinker, it is particularly interesting for me to analyze whether the coffee company that represents the U.S. will be successful when entering the Dutch market.
NEW MARKET BACKGROUND
Economic Background
The openness of the Dutch economy is reflected in attracting foreign companies. Favorable tax treatment for profits earned by multinationals has boosted Netherlands’ attraction as a location for foreign direct investment (FDI). Moreover, international comparisons of the major economies have consistently ranked the Netherlands as one of the most attractive destinations for FDI. Investment initiatives have attracted a wide variety of foreign firms in recent years, including Polaroid, Fuji, Nissan, Amsco, and Rank Xerox…etc. With the openness and advancement of the Dutch economy, I believe Starbucks has strong incentives to enter the Dutch market.
Geographic / Demographic Background
Geographically, the Netherlands is the gateway to Europe, with a well-established and mature logistics infrastructure ideal for shipping and distributing products. Rotterdam is Europe’s largest port, handling twice as much as its nearest European rival, Antwerp. The port’s industrial and distribution activities generate annual added value to around 10% of Dutch GDP. Historically, the Dutch have a strong tradition of dealing in coffee; they have been supplying coffee to Europe for centuries, and introduced coffee to America in 1660.
With 484 inhabitants per sq km of
As exports and imports of goods and services both account for over 60% of nominal GDP, the life-blood of Dutch prosperity is foreign trade. Because of its internally-oriented characteristics, Netherlands has the embedded culture that welcomes diversified products or services from the world, while in some other countries in the EU, for instance, France or Italy, have ultimate pride for their own culture, especially for the product that I am planning to introduce—coffee. Being an everyday coffee-drinker, it is particularly interesting for me to analyze whether the coffee company that represents the U.S. will be successful when entering the Dutch market.
NEW MARKET BACKGROUND
Economic Background
The openness of the Dutch economy is reflected in attracting foreign companies. Favorable tax treatment for profits earned by multinationals has boosted Netherlands’ attraction as a location for foreign direct investment (FDI). Moreover, international comparisons of the major economies have consistently ranked the Netherlands as one of the most attractive destinations for FDI. Investment initiatives have attracted a wide variety of foreign firms in recent years, including Polaroid, Fuji, Nissan, Amsco, and Rank Xerox…etc. With the openness and advancement of the Dutch economy, I believe Starbucks has strong incentives to enter the Dutch market.
Geographic / Demographic Background
Geographically, the Netherlands is the gateway to Europe, with a well-established and mature logistics infrastructure ideal for shipping and distributing products. Rotterdam is Europe’s largest port, handling twice as much as its nearest European rival, Antwerp. The port’s industrial and distribution activities generate annual added value to around 10% of Dutch GDP. Historically, the Dutch have a strong tradition of dealing in coffee; they have been supplying coffee to Europe for centuries, and introduced coffee to America in 1660.
With 484 inhabitants per sq km of