Starbucks- Going Global Fast

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Case Starbucks – Going Global Fast

1) Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets.

As internationally operating company, Starbucks is familiar with entering new markets. As seen in the case, a foreign market entry always involves as well uncontrollable as controllable elements.
The controllable aspects are: • promotion • price • product • channels of distribution • research

In Vienna Starbucks, usually known for low marketing costs, had a gala opening for the first store all over Austria. A big marketing campaign is not what Starbucks stands for. It got popular mainly by word-of-mouth
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• Saturation As Starbucks is facing market saturation in a lot of cases in its domestic market, the market Starbucks should focus on in the future is the foreign one. The best option would be to establish Starbucks on continents where there is no Starbucks at all so far.

• Younger coffee drinkers already feel uncomfortable in the stores The shops could be designed more stylish and the music could also be adapted to the younger generation to give an modern impression. New and cheaper offers could result in more clients; especially young clients (eg. students) would be able to afford the Starbucks coffee. Having a younger clientele, the atmosphere would change in favour of young people.

• Dissatisfied staff because of low wages Starbucks can raise the salaries of the employees according to the standard of living in the particular city and compensate for hours of overtime. As dissatisfied staff does not go along with the principle of always friendly and helpful employees, there is a great urge to implement changes. Leaving this problem unsolved, Starbuck´ special image will vanish.

• Too many part-time workers that cannot build a connection to Starbucks` image Starbucks could introduce workshops for future employees, informing them about the
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