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.…
Starbucks unique selling proposition was their brand image. They have always placed itself as an exclusive brand and have enabled their customers to experience a rich taste in comfortable environment. They have emerged as a leading global company with the perspective of making difference in people’s life by delivering quality based product all around the globe. Presently the company is working at their best in Bahrain, Canada, Hong Kong, Israel, Japan, Kuwait, Egypt, Switzerland, Taiwan, Thailand, United Kingdom, United States, South Korea, Singapore, China, Philippines, Australia, Oman, Malaysia, Qatar and Saudi Arabia (Taghred, Ehab Aziz, Bassem Naguib,…
This analysis Starbucks achieved allowed for them to quickly jump from Japan to other Asian countries, and most notably China, where its presence has been doubling on a yearly basis. Along with doubling the number of stores in these locations, Starbucks also doubled the number of stores in Korea over a two-year period due to a rise in demand. With the rise in demand it is clear that Starbucks should continue opening new stores in these areas, rather than pursuing growth…
Beginning in 1971 with only one shop in Settle’s historic Pike Place Market for coffee and tea, Starbucks has managed to become one of the most successful companies in the world. It has become number one in the coffee industry. As of June 2012 Starbucks owns 19,763 coffee shops in 59 countries which includes 12,848 in the United States, 1,264 in Canada, 973 in Japan, 778 in Great Britain, 621 in China, 441 in South Korea, 350 in Mexico and 269 in the Philippines. Offering to its consumers’ different coffees with unique flavors, tea and beverages, including food snacks and coffee accessories Starbucks has attracted consumers and turned them into loyal customers. (Starbucks Coffee Company, 2012)…
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.…
high-quality customer service. Right now, Starbucks is known around the world but its expansion plans are still not finished. The company seems to be invincible and promising in the coffee industry right now as it already has 6,000 outlets in 28 countries with 1,200 of them are internationally situated. Starbucks' expansion dreams as it is currently known in three continents have come true. The success of the company in China is an exemplary example of how a Western company can triumph over cultural obstacles especially in the Eastern/Oriental part of the world. While China never even recognized a "coffee culture" a few years ago, now, they even acquired the "Starbucks culture". This coffee shop, which causes cultural concerns in Italy because of threatening to change the Italians' lifestyle of drinking coffee while walking in the streets or relaxing, has been successful in its endeavors to globalize its products.…
In short order, Starbucks Corporation has become a premier purveyor of coffee and related beverages along with selected merchandise and has acquired almost universal domestic brand name recognition (MacArthur, 2001). Currently, Starbucks is engaged in a number of activities designed to expand its presence in the new global beverage market. Starbucks' growth strategy thus far has tended to emphasize positioning its stores in high traffic areas, including mini-stores located in hotels, upscale grocery stores, shopping mall food courts, and other ventures which are not free-standing (Kim, 2000).…
Starbucks started as small coffee shop in a tourist area called Pikes Place Market in Seattle. The three unknown pioneer of Starbucks wanted to share their passion for brewed coffee and tea. During their first year in the business, they experimented with all sorts of coffee blend until they came up with their own flavor. Their business became an instant success using the word of mouth selling brewed coffee cup by cup. This is what inspired them to open a second store to target the wider market. By the early 1980’s, Starbucks expanded to four new stores in Seattle area. Since then, they became the largest retail company in the world. This coffee company grew from four Starbucks store to having currently 16,635 stores globally including 11,068 in the United States, 1000 stores in Canada, and more than 800 in Japan (Salomon 271). This amazing expansion can be attributed to Howard Shultz’s dedication to brewing coffee who bought the coffee’s trademark twenty five years ago. The main reason Starbucks has done so well for four decades can be attributed to their commitment to high quality products and passion for educating customers to appreciate the qualities of fine coffees.…
Who doesn’t like great tasting Coffee? One must contend that when it comes to a good cup of coffee, Starbucks has it figure out. The company has come a long way from when it was first founded in Seattle, Washington in 1971. Starbucks vision to become a global player in the coffee business has been at its forefront. The company went public in 1992 and hasn’t looked back since. It seems that any where you go; you are a few minutes away from a Starbucks. The company aggressively campaign to become the coffee leader in the United States. It’s not hard to imagine that Company executives believed in market saturation in order to dominate the market place. Now, there is a much need for Starbucks to span outside the United States and it is looking into global markets to keep its expansion plans. The best choice is the overpopulated country of China.…
Starbucks currently operates within three industries: Fast-Food Restaurants, Coffee and Snack Shops, and Specialty Coffees. Which are defined by NAICS (North American Industry Classification System). Although all three are separate segments Coffee and Snack Shop and Specialty Coffee basically carry various similarities. Despite this fact that this industry is somewhat narrower when compared to the fast food industry that they are also considered to be a part of, the coffee and snack shop aspect of their overall industry. Attractiveness is their bread and butter. Starbucks currently represents 32% of this industry and continues to grow, making them one of its largest players. This is the industry that they need and have focused the most on. One of the main factors of success are clearly related to their plans for global expansion because Starbucks has all but halted their domestic expansion (Global Data) and focused almost exclusively on the former. Another fact that illustrates the need to concentrate on this segment is the advancement of overall industry attractiveness their specialty coffees segment (consisting of retail store sales) only comprises 7% of their total revenue. Starbucks operates its largest segment in Fast Food Restaurant Industry, despite their relative insignificance as compared to giants like McDonald’s. It is worthwhile for them to pay close attention to this segment, because McDonald’s and Starbucks may differ in market share, but Starbucks holds a larger market share of the segment that McDonald’s wants/needs to capitalize on: Coffee. So to operate in parallel industries makes for a key success factor dependent on the level of information on competitors that also drive change. Although focusing on its most important segment, the Coffee and Snack Shop, Starbucks should also pay careful attention to this segment as well in order to achieve their optimal industry attractiveness.…
Starbucks, as a world’s leading coffee-drinking retailer, provide “standardized” coffee drink and coffee related products as well as homelike experience to its customers. It has 15,700 locations globally and set its expansion goal to 40,000 stores worldwide while this goal has been delayed since the expansion targets for recent years have not been reached. At the same time, due to the intense global expansion, net revenue and earnings increase accordingly yet the profit growth has reduced and stock price decreased as well as customer visit declined due to losing exclusivity. The strategic issue in this case is whether Starbucks should focus on global expansion continually or on fixing the profitability.…
- Concept to Asia: Starbucks in China. Cornell Hotel and Restaurant Administration Quarterly, vol. 46, no. 2, pp. 275-283.…
2. Threat of New Entrants. Starbucks had developed a global brand that was synonymous with the quality of the “Starbucks Experience”, which is estimated worth of 3 billion. Also, Starbucks has a larger numbers of retail store both in domestic US and in the international market. Thus, brand name and large number of retail stores becomes the main entrance barrier. The threat of new entrants which will offer the similar retail concept is fairly low. However, whether other existing firms can add specialty coffee service like “Starbucks experience” to compete is still unknown.…
It is essential for MNCs to choose the right mode of entry in any markets and make structural changes to motivate strategic changes, even mature MNCs, which can transfer some risk. Starbucks decided to use three strategies to enter into the international markets-licensing, wholly owned subsidiaries and joint ventures. Every strategy has its advantages and disadvantages, so managers of Starbucks need to consider carefully before entering other countries. Starbucks makes the different ways to enter in the markets according to the different situations of countries. For instance, Canada is close to America so the cultures and the habit of drinking coffee are close too. Starbucks chooses wholly owned subsidiary type to enter Canadian market. Some Asian countries such as Japan and Hong Kong, China, Starbucks selects joint ventures to get in these countries because their taste of coffee is different from American’s. Moreover, the strategic adjustment of Starbucks was to cover over an area in new stores. That can not only assist to disperse consumers and reduce their waiting time, but also decrease the costs and increase revenues. It also innovated some new products and cooperated with local companies. Culture, government, environment and the condition of Starbucks, all these can affect the choice of strategy. In short, before choosing strategy, managers of Starbucks ought to analyze the SWOT of Starbucks, the key…
Pacific Coffee is one of the leading coffee chains in Hong Kong, with retail outlets in Hong Kong, China and Singapore. Since opening its first outlet in 1992, the chain has played an instrumental role in bringing a coffee drinking culture to Hong Kong.With comfortable sofas, soft lighting, soothing music and internet facilities in all its shops, customers can enjoy the premium quality coffee in such a relaxed atmosphere.It also sells its branded products to wholesale accounts and provides coffee service to corporate customers including banks, airlines, clubs and multinational companies.…