Starbucks: Going Global Fast

965 Words4 Pages
Summary Case: Starbucks Going Global Fast 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. The company grew from 17 coffee shops in Seattle to over 16,000 outlets in 50 countries. It is reported that their sales…show more content…
The Uncontrollable elements vary from country to country. In Japan, Starbucks had to deal with the existing competition among rival shops in that country. They also had to face any economical recession facing the Japanese and make decisions based on the government’s sanctions and regulations. In France, the generosity of the labor force and the political and legal temperature were the uncontrollable obstacles facing Starbucks. In Italy however, their product mix was an area that Starbuck struggled with. The Italian’s included food items with their coffee and thus had a competitive edge over Starbucks. Starbucks, a solo product would have to adjust its product to withstand the competition in Italy. In Vienna, culture was the uncontrollable element Starbucks had to encounter. It seemed that the youth in Vienna were attracted to new things and thus, it opened up the market for Starbucks. Question #2 What are the major sources of risk facing the Company? Discuss potential solutions. Three major sources of risk facing Starbuck can be identified as follows: 1. Market Saturation in its domestic markets. 2. Losing present and future customers (Generation X not captured) 3. SRC and Ethnocentrism global markets. Potential solutions: Starbucks needs to design a Strategic plan focusing on more international and global marketing relationships. This would reduce market saturation allowing management to have some more time to
Open Document