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International Business Operations: Case Study Of Starbucks International Operations

Good Essays
This case study gives an overview about Starbucks International Operations. It will explain how Starbucks expanded outside US and the strategies they adopted to give tough competition to its international rivals.
The case study will also show the difficulties that were faced by the Starbucks when they started their international venture. The risks taken by Starbucks and its effects on the revenue in international market is explained.
Introduction
In 2003, US was going through economic recession, many huge retailing companies were suffering losses and ended up bankrupt. However, in 2003, Starbucks had 31% increase in its profit and has made 23% increase in its sale during the first half of 2003.
Trade analyst said that the success of Starbucks
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Both of them had huge competition in Indian market. To gain an advantage in the Indian market both of the companies claimed that they had the original Italian pizza recipe. During 1996, both the companies were busy in finding out the different ways to gain the trust of customers.
Domino’s and Pizza Hut used unique selling point to attract customers. Pizza Hut used their USP of “Dining experience” of having pizza along with take away to the guest. Meanwhile, Domino’s USP was delivering a pizza within 30 minutes to the guest.
To get very deep into the Indian market and win more customers, both the companies decided to make changes in the recipes of pizza and make it suitable according to the flavours of India. Moreover, Domino took a step ahead by making pizza’s according to the different regions of India.
They added local and regional flavours to the pizza, which was mostly liked by the people. Apart from that, Domino’s created only one toll free number for the whole country. Thus, making ordering system much easier for people.
Domino’s and Pizza Hut are expanding their bases in India since 1996. Domino’s went ahead by opening up more than101 outlets by the end of April 2001. Even Pizza Hut made a great progress, with only one outlet in 1996, now it has 19 outlets in all over India by the end of 2001.
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o Starbucks outlets faced most difficulty in Germany and France. They even had trouble Japan, which was earlier considered to be the Starbucks greatest market. o Starbucks international operations failed because they were not well planned as it was planned in its US operations. o In 2005 financial year, Starbucks international operations started adding 16 % profit in the company’s total revenue. o By mid-2005 Starbucks opened up 1,672 stores around the world. Even they set up their first outlet in Bahamas, Jordan and Ireland. o By 2006, Starbuck shook the global market by having more than 11,000 stores set up around the world. o In 1996, Domino’s and Pizza Hut, which are US two big fast food chain entered India. Both of them had huge competition in Indian market. o To gain an advantage in the Indian market both of the companies claimed that they had the original Italian pizza recipe, both the companies were busy in finding out the different ways to gain the trust of customers. o Pizza Hut used their USP of “Dining experience” of having pizza along with take away to the guest. o Domino’s USP was delivering a pizza within 30 minutes to the
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