Case 1-1 Starbucks---Going Global Fast Essay

831 Words Jun 5th, 2013 4 Pages
CASE 1-1 Starbucks---Going Global Fast

1. Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets.

Ans. I think the controllable factors that Starbucks has encountered entering the global market are similar to those in their domestic market. These factors include product, price, place and promotion. The Starbuck's name and image connect with millions of consumers around the globe. Internally, Starbuck's is able to make adjustments to fit a county's cultural tastes and expectations regarding their product, it's price, where it is available and how it is marketed. Starbuck's is also able to take part in market research to be sure their product has the right fit for each of its
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Global expansion poses huge risks for Starbucks. For one thing, it makes less money on each overseas because most of them are operated with local partners.

Potential solutions: Basing on the risks faced by Starbucks, we can suggest the following solutions.
• One of the risks that they faced in USA-the risks of market saturation can be overcome in focusing on international or global marketing. They may focus on the fact of reducing employee disruption to increase the quality of service and coffee for which they are well known.

• As they were facing ominously hostile reception from its future consumer, they should reposition their product according to customers need. They can also change their pricing strategy.

• As coffee is the core product of them to serve they should give more focus on improving the quality of coffee. They may make arrangement for some other items beside coffee as well.

• As Starbucks is going abroad to expand it business with local partners of that region there risk of SRC and ethnocentrism. It can be over come through proper adjustment keeping SRC and ethnocentrism away in decision making.

3. Critique Starbucks’ overall corporate strategy.

Ans. I think Starbucks are incurring losses for mismatch between their corporate strategies and the customer’s expectations. Those are described below:

• When Starbucks is blanketing some specific cities for dominance, still eight states in the United States are with no