Starbucks: International Retail Strategy

Decent Essays

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. Joint Venture Starbucks wanted to expand its company into India but it also needed to find a mode of entry. Functioning as a corporation with great control, available cash and a aggressive U.S. retail strategy, wasn’t going to help Starbucks in India. When exploring their options for the best mode of entry, a partnership or joint venture with a local Indian company seemed like the best fit. The joint venture would provide lots of advantages for Starbucks and the other company; both firms would share cost and risk as well as the benefits. Having a local partner would provide Starbucks with first hand knowledge of culture, political and economic issues

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