Case 1-1 Starbucks - Going Global Fast

1102 Words Nov 8th, 2015 5 Pages
1. Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets.

The controllable elements in the global market are the product, price, place, and promotion. Starbucks is using their products as promotion as high quality. Starbucks is known to have a sweeter taste than the average beverages served at a coffee shop. Starbucks has done research on places they want to reach out to overseas. Starbucks has done studies overseas in Japan, Italy, Spain, Germany, Mexico, and Puerto Rico. For each location, they had to do studies and factor in what their target market is and what they will be doing in those countries. Some problems Starbucks faced were their product. One thing the local coffee
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Then raise the prices to where they want to sell their products; this example is currently being used by Wal-Mart. Even though it may not be the same, the strategy may work.

Starbucks has to look towards the future of growing the company. In the 90s they were doing well because of the baby boomers giving them business, however, the new generation is starting to stray away from the brand because they do not want to go to a place where they have to pay $3.00 for a cup of coffee.

There is really no potential solution for this expect for keep doing studies and see what the new generation wants. From what I have seen, some Starbucks have started to serve alcoholic beverages, free WIFI, and starting to implement wireless charging at their tables.

As Starbucks expands, it faces the risk of becoming a less special place for the employees. The benefits given to part-time workers in the 90s were health insurance and modest stock options. These benefits were not as appealing anymore because the pay does not compare to the amount of work they actually had to do at the store. It is hard to keep a happy and enthusiastic appearance if they are being overworked to a point where they have no energy left.

A potential solution for this may be limited the amount of locations that are to be opened. It is nonsense to open a location a couple blocks away from each