Starbucks : A Large International Business Essay

Building a successful brand with multiple stores opening. Selling whole beans and premium priced coffee. They also new and understood their target market. Unlike many other coffee shops they sold the lifestyle around the coffee and made it an experience for their customers as apposed to it being just an addition to a donut in the morning. They made it a lifestyle choice and something to be desired as well as focusing very heavily on the customer service aspect of the industry. What was so compelling about Starbucks value proposition? What brand image did Starbucks develop during this period?

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 pay does not come close to match the work load of their employees that created dissatisfaction among them affecting sterling service and even the coffee itself.

1. In the beginning, how was Starbucks different from other coffee options for coffee drinkers in the United States? What activities and assets did Starbucks leverage to differentiate itself from competitors?

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

When one thinks of a global corporation, one thinks of a company who has got it together. They must right? How else could a corporation overcome transnational barriers and socio-cultural issues and still make a profit? Turns out not all global companies have this ability. Some do for the most part but are still vulnerable to mistakes. Such is the case with Starbuck’s failure in Australia. We will introduce you to the company, overview their history and expansion efforts, and explain in short why they failed miserably at something they have done literally thousands of times before.

In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.

Starbucks Corporation, an American organization established in 1971 in Seattle. Starbucks has around 182,000 representatives over 19,767 organization worked & authorized stores in 62 nations. Their item blend incorporates simmered and hand tailored great/premium evaluated espressos, an assortment of crisp sustenance things, and different refreshments. They additionally offer a mixture of espresso and tea items and permit their trademarks through different channels, for example, authorized stores, basic need, and national food service accounts. Starbucks likewise markets its items blend with other brand names inside of its arrangement of organizations, which incorporate Teavana, Tazo, Seattle's Best Coffee, Starbucks VIA, Starbucks Refreshers, Evolution Fresh, La Boulange and Verismo.

Starbuck’s strategy focused on three components; high-quality coffee, intimate service, and ambient atmosphere. Starbucks worked closely with growers in Africa, South and Central America, and Asia-Pacific regions to insure the quality of its product. Starbucks called all employees' "partners" and worked hard to train them with the skills necessary to best serve the customer. The atmosphere at Starbucks was crafted after the European-style espresso bar. The company goal was to create ambience through the Starbucks "experience" and by making the area comfortable, yet upscale.

Starbucks first opened its doors in Seattle’s Pike Place Market with the name being coined from that of Moby Dick’s first mate (Schultz & Yang 1999). It has spread its shops across North America, all over Europe, the Middle East, Latin America as well as the Pacific Rim with an estimated 35 million customer weekly (Michelli, 2008). With tremendous growth from a small time coffee shop, the company has matured to an international icon that today it is one of the world’s leading retailer, roaster and brand specialty coffee (Story, 1971). The company offers whole bean coffees, espresso beverages, and confectionery and bakery items.

“To inspire and nurture the human spirit- one person, one cup, and one neighborhood at a time.” Starbucks is one of the largest chain restaurants in the United States. With over 17,000 stores located in 55 countries, and approximately 3 new stores being opened each day, Starbucks is the 3rd largest restaurant chain in the United States. When founded in 1971, the founders wanted to focus on the customer, the experience, and the product. Starbuck’s founding partners wanted to create a coffee shop that was a home away from home. They wanted Starbucks to be another stop in between work and home. For many individuals, Starbucks is just that and here is why.

A historical perspective of Starbucks revealed that the company began in 1971 with three individuals having like passion for fine coffees and exotic teas. English teacher Jerry Baldwin, History teacher Zev Siegel, and writer Gordon Bowker collectively combined their thoughts and resources and opened a store called Starbucks Coffee, Tea, and Spice in a marketplace in Seattle. They selected the name Starbucks in honor of Starbuck, a character in Herman Melville’s book, “Moby Dick”. A two-tailed mermaid, encircled by the words Starbucks, is used as the company’s logo.

This case assignment discusses the history of Starbuck’s accomplishments as they entered the American coffee culture heritage. In 1983, The chairman and CEO Howard Schultz traveled to Italy and had a dream to carry the Italy coffeehouse ritual back to the United States. Schultz was focused on creating an environment meeting company that makes good coffee but also be a social experiment. Starbucks today opened more than 19,000 stores functioning in 62 countries. Starbucks has numerous rewards that globalization has offered and they have significantly benefited from it, while in the coffee industry. Starbucks has a wide-range in marketing strategies to benefit the customers. During the different obstacles that Starbucks has encountered, they must stay reliable in quality and uphold to adjust to different customer values.

1. What factors in the global environment provide opportunities or threats for Starbucks? How do Starbuck’s strengths and weaknesses match up to its opportunities and threats?

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.