Starbucks Case Study

1640 Words Feb 23rd, 2008 7 Pages
#1) Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets:
The controllable factors that Starbucks has encountered entering the global market are similar to those in their domestic market. These factors include product, price, place and promotion. The Starbuck 's name and image connect with millions of consumers around the globe. Internally, Starbuck 's is able to make adjustments to fit a county 's cultural tastes and expectations regarding their product, it 's price, where it is available and how it is marketed. Starbuck 's is also able to take part in market research to be sure their product has the right fit for each of its international locations. According to the company 's
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Another risk facing the company is that of poor corporate image, or one that has "Pac-Man" type qualities, looking to gobble up market share on both the national and international front and leaving no room for the competition. The mere appearance of global domination may be a turn off to consumers at home and abroad. This has already appeared to hold true in the U.S. Again, according to the article, the company faces an ominously hostile reception from its future consumers of Generation X. Not only are the activists among them turned off by the power and image of Starbuck 's, they simply feel that the company 's pricing is way out of line. Starbuck 's may find it in their best interest to appeal to the up and coming generation by considering a pricing restructure and finding a way to make the stores appeal to this younger generation. These will be future consumers as well as the future of their market share and profitability. This has not yet become an issue internationally, where to the younger generation Starbuck 's is still considered to be "very cool". However, market research shows that the younger generations do not like to feel as though they are being "sold to". They like to feel as though the concept was their idea and they chose to purchase a particular item because it is the thing to do. Starbuck 's needs to make them think that choosing the

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