Starbucks Internationalization in Recent Years

Founded in 1985, Starbucks is one of the largest coffeehouse companies in the world with over 16,000 stores in 50 countries. This report evaluates major internal and external factors affecting Starbucks using various analytical techniques. Based on the Starbucks brand in UK, it identifies suitable marketing strategies for Starbucks to expand its business in the UK market within the next two years. In line with the chosen marketing strategies, recommendations for the marketing mix are discussed.

starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One

Customer service is the ability of organizations to meet and provide customer’s needs and wants and to exceed customer’s expectations. Due to the increased availability of knowledge and competition, consumers became very experienced in judging quality and performance and expect excellent service. Customer’s excellence requires attention to product and service features as well as to interact with customers. How the company recovers from defects and errors is important for retaining and attracting customers. Customer’s excellence includes understanding what the customer wants and expecting future needs. It also includes reducing defects and errors, meeting specifications and reducing complaints. Starbucks believes that the key to company success is its employees or partners. The attitudes and abilities

Starbucks’ lead in the specialty coffee industry exemplifies the result of deftly executing a well-planned business strategy. Moreover, Starbucks is well positioned for what is expected to be a continuing rise in the popularity of specialty coffee products. The question before Starbucks’ leadership, however, is what avenues will lead to Starbucks’ goal of remaining true to its core, the highest quality coffee products while providing a “total coffee experience” for its customers?

Starbucks has put heavy concentration on product innovation, new product launches and branding strategies and as a result, the company has lost sight of the customer’s wants and needs. Ultimately, Starbucks is not properly or correctly measuring customer satisfaction. They are basing these scores on characteristics affecting the product, and not precisely measuring the quality of their services. As Exhibit 10 from the case study shows, Starbucks’ customers ranked a clean and convenient store as the most important attributes of creating customer satisfaction. As marketing research is beginning to reveal, this should not be the only focus. Starbucks needs to shift their priorities and rank fast service, customer experience, and atmosphere as most important, as new studies suggest.

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

Four million people worldwide make their daily stop at Starbucks in the desperate need for a coffee fix, just don’t forget to ask them to hold the side of exploitation, modern slavery and deforestation.

With 23,768 locations, Starbucks is a fast food eatery that can be found worldwide. Although it started in Seattle, Washington, it branched out of North America in 1996 when it opened a store in Tokyo. Almost one third of Starbucks’ stores can be found overseas. In venturing out to other countries, there have not always been easy transitions and there have been barriers along the way. With each move into a new sector, there are possible cultural, political, and economic difficulties that lie ahead. To analyze Starbucks and its level of success around the world, I’ll be using Gramsci’s categories of base, structure, and super structure. For base, I will discuss how economics comes into play in China; for structure, I will explain the political barriers Starbucks faced integrating into the Indian market; and lastly, super structure will be examined by the struggle in Italy regarding cultural differences and Starbucks drinks from around the world.

Starbucks – one of the fastest growing companies in the US and in the world - had built its position on the market by connect with its customers, and create “third place” beside home and work, where people could relax and enjoy others or themselves. It was the motto of Starbucks’ owner Howard Schultz and mostly thanks to his philosophy; company has became the biggest coffee drink retailer in the world. However, within the new customer satisfaction report, there is shown some concerns, that company has lost the connection with customers and it must been taken some steps to help Starbucks to go back on the right path regarding customer satisfaction.

Starbucks is a big company. With every new restaurant, it can use the experiences from the past and also rotate trained staff in order to ensure that the best practices are transferred to new outlets as well. In addition, they can reduce their costs by transferring technology and machines instead of relying on the local partners to arrange for them.

Starbucks was originated in Seattle, Washington in 1971 in which the first shop was opened in Pike’s Place Market. Since then Starbucks has rapidly expanded to over 17,000 stores across the globe with shops in over 50 countries. In doing so Starbucks has become the leading retailer and roaster of specialty coffee. While expanding, Starbucks has encountered new markets and cultures which all have different kinds of customers. These diverse customers demand distinctive and alluring products. Starbucks

The company has also developed a structure and control system. With the realization that human capital holds a vital role in the development and sustainability of any institution, that of Starbucks included, it has taken to task to protect the same. To develop this, the company has an elaborate system that ensures the production levels of the company are met with pride. This like other leaders in the same has entailed ensuring they have an empowering corporate culture, topped by ensuring their employees enjoy competitive benefits.

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.