Analyzing Starbucks And Its Level Of Success Around The World

956 WordsMay 9, 20164 Pages
With 23,768 locations, Starbucks is a fast food eatery that can be found worldwide. Although it started in Seattle, Washington, it branched out of North America in 1996 when it opened a store in Tokyo. Almost one third of Starbucks’ stores can be found overseas. In venturing out to other countries, there have not always been easy transitions and there have been barriers along the way. With each move into a new sector, there are possible cultural, political, and economic difficulties that lie ahead. To analyze Starbucks and its level of success around the world, I’ll be using Gramsci’s categories of base, structure, and super structure. For base, I will discuss how economics comes into play in China; for structure, I will explain the political barriers Starbucks faced integrating into the Indian market; and lastly, super structure will be examined by the struggle in Italy regarding cultural differences and Starbucks drinks from around the world. With the entry of Starbucks into the Chinese market in 1999, the company faced economic issues. In China, operating costs are higher than in the United States. This led to an increase in labor costs, which then offset the price of the drinks offered. The Chinese only about three cups of coffee annually, and the price of drinks Starbucks offered to the people was 50 to 70 percent higher than in the United States. Even with Chinese inspired foods and coffee-free beverages, the high prices made it hard to attract customers. With the

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