Case Study : Strategic Alliance And Licensing Arrangement

965 Words Dec 6th, 2014 4 Pages
Priyanka Sevak
MGT: 435
Case Write Up
Two growth initiatives that “Made a sense”
1. Forming Licensing and partnership agreement with retailers, so Starbucks could sell their coffee in the different location ( e.g. Airport , Host Marriott)
Concept¬: Strategic Alliance and Licensing Arrangement: A strategic alliance is a long term corporative arrangement between two or more independent firms in business units that engaged in the business activity for mutual economic gain. Licensing Arrangement is an agreement in which the licensing firm grants right to another firm another country/ or market produce the sell products. (Textbook)
Starbucks successfully used the licensing and partnership to open more store in the U.S. market. Starbucks cannot able to open its own company store but partnering with the Host Marriott will allow their expansion of the market while ensuring that the costs are at the maintained at a low level. Starbucks found that airport is the location where Starbucks find the most customer traffic and are mostly convenient access for the travelers and shoppers. Starbucks have the Licensing arrangements so there are more control over the own brand name, own goal and its own recipes. These stores create the value as a customer convenience and create the new market. This is the very positive sign to do the partnership according to Schultz, “Weather it works is matter of whom you choose as partner ,the amount of due diligence you do beforehand, and how…
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