Essay MKT 505 ASSIGNMENT 3

Starbucks Corporation has been expanded greatly into international market since 1996. For instance, Starbucks entered the Tokyo, Japan’s market during 1996; United Kingdom in 1998 and in Mexico City during September 2002. Starbucks has doubled in the amount of stores it possesses since 2004, but it has consistently stayed at only a 30% international market. There are over 50 countries that consist of Starbucks which are Australia, Belgium, China, England, Germany, Malaysia, Singapore and others. It cannot be denied that Starbucks has a great base in United States but it greatly outweighs the base that it has throughout the rest of the world. So, Starbucks should expand its international market into more countries by putting more effort like

Founded in 1985, Starbucks is one of the largest coffeehouse companies in the world, with over 16,000 stores in 50 countries (Starbucks Annual Report, 2009, p. 1). Starbucks sells high-quality

Starbucks is a well respected brand of coffee that is known globally. As they dominate the market in United States, they have realized the potential growth in overseas markets and open its doors to going global. However, competing internationally is not easy for every company that’s why Starbucks has encountered certain challenges and issues as it enters foreign markets and grows globally.

Starbucks is one of the leaders in coffee industry. Starbucks has entered into many new markets and today it has more than 16,000 outlets across the globe (Johnson, Scholes and Whittington 2011). Due to unlimited business opportunities, Starbucks Corp has set strategies to enter India as it is next major hub for development in near future. Previously Starbucks has gained wide success in China and Japan due to high consumption of coffee and tea. Since its inception, Starbucks has tapped the major markets across the world, India was left untapped. In India, Starbucks has setup alliances with TATA Global Beverages which is a unit of TATA Group of Companies. Starbucks along with TATA has started with an investment of $80 million and plans to open 50 coffee shops in a year. Currently few coffee shops has been setup by Starbucks, however in near future, it is expected that the company will achieve its target in capturing Indian market (Lamb2009). Thus, besides sourcing coffee beans from TATA, Starbucks can now explore more Asian markets (Hitt, Ireland and Hoskisson 2012).

Starbucks started by just making and selling coffee and coffee making equipment but now they sell everything from thermoses to delicious frappachinos. They currently have over 22,000 stores around the world. They’ve recently opened stores in panama Colombia, Brunei, India, Costa Rica, Monaco and Norway. The company is a publicly traded company on the stock market. Starbucks specializes in food service and product supplies.

Starbucks is no doubt a phenomenon in the United States, but the brand wants to expand globally. Opening chains in various global locations such as Japan, Vienna, England; Starbucks wants to reach out to the coffee loving fans everywhere. Nevertheless opening chains globally is not that simple. There are many uncontrollable factors Starbucks need to focus on to make sure they are making profit as well has abiding by the country’s laws and regulations. Going global takes a lot of market research to make sure that the brand will be successful even with uncontrollable factors. Controllable factors can be tailored to fit the needs of each country. Starbucks has to find the happy medium so they don’t lose their identity overseas.

Currently, the headquarters of Starbucks is located at Seattle.In Malaysia, Berjaya Starbucks Coffee Company Sdn Bhd is jointly owned by Starbucks Coffee International and Berjaya Corporation Berhad. The company operates Starbucks stores throughout Malaysia and is committed to offering the world’s finest coffee while enriching Malaysians’ lives one cup at a time. The first Starbucks store in Malaysia opened on 17 December 1998 at KL Plaza in Jalan Bukit Bintang, Kuala Lumpur.

Starbucks is a national coffee retail company that specializes in the selling, creating, and distrusting of many teas, creams, coffees, café style lunches, snacks, and flavor waters. Starbucks was founded in Seattle, Washington in 1971. Today, there are over 23,768 location worldwide. (Starbucks Corporation, 2016) Starbucks create a number of drinks available for purchase in store and power, beans, and cups available for purchase to create your own at home.

Many multinational corporations in the coffee industry have succeeded tremendously such as Starbucks. Each of these corporations has strategies that helped them continue to expand to nations of different cultures, ethnicities, governmental practices, and locations.

Starbucks Corporation is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 20,366 stores in 61 countries, including 13,123 in the United States, 1,299 in Canada, 977 in Japan, 793 in the United Kingdom, 732 in China, 473 in South Korea, 363 in Mexico, 282 in Taiwan, 204 in the Philippines, 164 in Thailand and 3 in India.

Starbucks Corporation is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 20,366 stores in 61 countries, including 13,123 in the United States, 1,299 in Canada, 977 in Japan, 793 in the United Kingdom, 732 in China, 473 in South Korea, 363 in Mexico, 282 in Taiwan, 204 in the Philippines, and 164 in Thailand.

Starbucks is undoubtedly an international brand. The history of coffee traces back to Ethiopia, Africa, India, Arabia, and Europe, and has been traded abroad since the 11th century. Understanding the demand and widespread market for coffee, Starbucks has triumphantly capitalized both the domestic market, and the varied international markets as well. Possessing about 6,500 retail sites worldwide, Starbucks’ net is spread across thirty countries and has been found as one of the most recognized brands all over the globe in equality to McDonalds and Toyota. This organization’s ability to build an international brand has been unprecedented- particularly since it represents a specialty

With their strategies in place, Starbucks decided to enter the Asia Pacific rim markets first. These markets include countries like Japan, Philippines, Indonesia, Taiwan, Malaysia New Zealand, and Australia (4). There was growing consumerism in the Asia Pacific markets with the younger generations interested in Western lifestyles and culture (4). In 1998, Starbucks opened its first store in England, and soon expanded to Switzerland, Germany, and Greece (Planet Starbucks 7). Soon, Starbucks would be operating close to 3,000 coffeehouses throughout 37 countries (8).

Starbucks’ retail entry model in the United States does not have the same strategy as their international model. In the states Starbucks holds great control as a corporation, but in international territory, country partnerships, cultural, government laws and politics play a very important role in Starbucks’ entry strategy. Starbucks has set it sights globally since the coffee market has come close to saturation in the U.S. which will give them the opportunity to continue to expand without fierce competition. Starbucks has looked to countries like India and other emerging markets with great growth potential to set down new roots. Starbucks recognizes India as a great choice to expand business internationally but also recognizes the complexity in the same market after several attempts to enter without success.

Café Coffee Day (CCD) started the coffee revolution in India in 1996 and is now the largest coffee chain. The report talks about how to respond to the Starbucks’s entry in India with a joint venture with the Tata group. While most global brands have failed to gain much of an edge in India against CCD Starbucks is having many advantages over the other global brands due to its brand value and its JV with Tata group.