Starbuck
1. It is recommended that Starbucks continue to follow Schulz’s current strategy for a return to profitable growth. While the closing of underperforming company-operated stores and slowed pace of new store openings in 2008 and 2010 have helped transform the company, Starbucks should now become more aggressive in opening stores overseas. There are many convincing reasons for entering international market, including
- The declining market in America. Actually, in recent years, after economic crisis in 2008, American economy has not recovered completely. As a results, there is a significant decrease in the amount of consumption café in Americans while Starbucks has engaged in this industry in such a long time.
- The dramatic growth in Asian. In 20th century and the next coming period, Asian is predicted to develop quickly and may be become one of the biggest economies in the world with young population, abundant natural resources, stable political environment and high living standard…
- Other specific potential about café market. Actually, they cannot grow café in America, so most of café was imported from other countries. Even though, Starbucks has settled and various suppliers and very famous in the quality of cafe, the uncontrolled amount of café beans seems to be a risk. On contrast, Asian, especially southeast Asia with tropical climate has hundred years in cultivating café and become one of the areas producing the best café. Furthermore, the people in these countries also consume more café than other countries with more than 1kg per year for each person. Thus, Starbuck can make use of these advantages in such international market by off-shoring activities.
- The experiences of Starbuck in entering new market. Starbucks has expanded its operation in more than 50 countries, which help them gain much experiences. . The hub strategy works well in increasing brand awareness in locations where there is plenty of foot traffic and buzz can be generated that will
- The declining market in America. Actually, in recent years, after economic crisis in 2008, American economy has not recovered completely. As a results, there is a significant decrease in the amount of consumption café in Americans while Starbucks has engaged in this industry in such a long time.
- The dramatic growth in Asian. In 20th century and the next coming period, Asian is predicted to develop quickly and may be become one of the biggest economies in the world with young population, abundant natural resources, stable political environment and high living standard…
- Other specific potential about café market. Actually, they cannot grow café in America, so most of café was imported from other countries. Even though, Starbucks has settled and various suppliers and very famous in the quality of cafe, the uncontrolled amount of café beans seems to be a risk. On contrast, Asian, especially southeast Asia with tropical climate has hundred years in cultivating café and become one of the areas producing the best café. Furthermore, the people in these countries also consume more café than other countries with more than 1kg per year for each person. Thus, Starbuck can make use of these advantages in such international market by off-shoring activities.
- The experiences of Starbuck in entering new market. Starbucks has expanded its operation in more than 50 countries, which help them gain much experiences. . The hub strategy works well in increasing brand awareness in locations where there is plenty of foot traffic and buzz can be generated that will