Starbucks Market Entry Mode by Ahmad Omar Rahman

INTRODUCTION As the world’s number one specialty coffee retailer, Starbucks sells coffee drinks, food items, coffee beans, and coffee-related accessories and equipment. In addition, Starbucks sells whole-bean coffees through a specialty sales group and grocery stores. Starbucks has grown beyond coffee into related businesses such as coffee-flavoured ice cream and ready-to-drink coffee beverages. The purpose of this paper is to analyze Starbucks business strategy, customer value proposition, company’s operations and the risks to financial results and reporting in the short term.

Introduction Coffee has become a significant part of lifestyle of numerous people. Starbucks has opened its first coffee shop in in Seattle, Washington, USA in 1971 (“About Starbucks,” 2014). The Starbucks is very popular today and has more than 6,000 locations in over 30 countries. In addition to coffee and espresso drinks, people now enjoy Tazo tea and Frappuccino (“About Starbucks,” 2014). The main target of Starbucks is to be the consumer’s favorite coffee shop. The globalization of the businesses increases competition in the food and beverage industries. Starbucks is the most successful and competitive coffee chain on the market. The aggressive strategies of expansion pushed the competitors such as McDonalds or Dunkin Donuts

Porter’s Five Forces Analysis of the Industry Competition is a fundamental factor in whichever industry. Hill and Jones (2007) note, “the power wielded by suppliers, the influence of the customers, and the threat posed by new and existing competitors determine the profitability levels in a company”. Besides, the forces support the

| RETAILING CASE ASSIGNMENT | | CASE ANALYSIS: STARBUCKS COFFEE COMPANY: RETAIL SUCCESSES & CHALLENGES STARBUCKS COFFEE COMPANY: RETAIL SUCCESSES & CHALLENGES Starbucks Corporation is a leading international coffee and coffeehouse retail chain based in Seattle, Washington, USA. Starbucks owns and operates over 6,000 retail stores and is the largest coffeehouse company in the world. Its annual sales in 2006 were $7.8 billion and it employed 140,000 people in 39 countries.

Introduction Starbucks Corporation is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 20,366 stores in 61 countries, including 13,123 in the United States, 1,299 in Canada, 977 in Japan, 793 in the United Kingdom, 732 in China,

Market entry modes Market entry mode is to create the possibility by arranging company’s products, technology, human skills, management or other resources to enter into a foreign country. The problem faced by the company is what kind of strategy should be used for the entry mode selection. According to the Root

Starbucks Case Assignment 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

Company profile Starbucks Starbucks Corporation is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 20,366 stores in 61 countries, including 13,123 in the United States, 1,299 in Canada, 977 in Japan, 793 in the United Kingdom, 732 in China, 473 in South Korea, 363 in Mexico, 282 in Taiwan, 204 in the Philippines, and 164 in Thailand.

-Offering a wide range of typical American sweets (cheese cake, Muffin, Apple Pie etc.). Today, Starbucks is a well-established and successful phenomenon every year that improves its performances without giving any sign of slowing down. It is important at this point to try to understand what are the "current" factors of its ongoing development, which we can summarize in some key

Unit III Research Project (Starbucks) Angelo R. Jones BBA 3201-Priciples of Marketing Columbia Southern University Industry Analysis. Study shows that U.S. per capita coffee consumption has not really varied in over 15 years. Although the consumer has since evolved from regular brewed coffee to a more sophisticated gourmet brew, the overall intake for coffee has relatively remained the same based on the Gallup polls. (Brown, 2015) The Starbucks Company has managed to change the pallet of the consumer by the type of coffee they distribute. Companies like Dairy Queen, McDonalds, and Dunkin Donuts have had a complete coffee menu makeover in hopes to keep pace and their customer base. (Cowan, 2014) (Company Profile, 2015) Since 2003 there has been a noted growth of coffee import to the United States (U.S.), regions such as New York, Miami, New Orleans, Houston, and San Francisco have become major ports on handling imported coffee. The United States have increased their secondary countries in Latin and Central America in order to meet the demands of coffee beans here in the U.S. (Plume, 2003)

Cited: 1) Garza, George. “The history of Starbucks.” Catalogs.com. Catalogs.com. <http://www.catalogs.com/info/food/the-history-of-starbucks.html>. 2) Garthwiate, Craig; Busse, Meghan; Brown, Jennifer; Merkley, Greg “Starbucks: A Story of Growth” Harvard Business Publishing, July 2012.

Entry modes are the strategic ways to enter a new country to achieve strategic goals of entering the target country. Thus an MNC deciding to enter a foreign market should decide upon which entry mode to choose.

According to the case article, Starbucks used different modes of entry for each of their main geographical locations: the United States, Japan, the United Kingdom, China. In this case analysis, I analyzed the fit of each entry mode and market based on case information and my knowledge of the countries and the different entry modes.

The reluctance of firms to change entry modes once they are in place, and the difficulty involved in doing so, make the mode of entry decision a key strategic issue for firms operating in today’s rapidly internationalizing market place.

Managerial Economics Starbucks Case Study Abstract This paper will explore the science of Managerial Economics, the cost effective management of scarce resources, through an exploration of the Starbucks Company. This will include an assessment of relevant market forces, market structure and the economic theories that guide business decisions for this