Starbucks Mode Of Entry Analysis

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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.
In the United States, an organic growth might be the only choice that Starbucks could make as a start-up domestic company that introduced a relatively new value proposition of café: providing the highest-quality coffee in a comfortable third-place setting. Starbucks had to pioneer its market in the United States, so its mission was letting customers know Starbucks brand, forming a good brand image, developing new product lines, and organizing supply chains. Nothing might be happened without an organic growth that seeks customer base expansion and brand development. Additionally, according to Exhibit 4, Starbucks was a small company until late 1980s in terms of a financial circumstance. Starbucks may not able to do an aggressive acquisition. An organic growth was the only way that Starbucks can choose as a relatively new, small company. According to Exhibit 5, Starbucks’ entry into Japan in 1996 was the first time that Starbucks opened its store outside of North America. Until 1995, Starbucks was mostly relied on the North American market, which is its home market. Since Starbucks did not have international experience, its entry into Japan was a right choice. Japan’s advanced, organized business infrastructure and environment might help Starbucks to smoothly adapt to international business. Moreover, as the market that has the second-largest economy, the Japanese market has had huge potential to be profitable. Starbucks chose a joint venture with Sazaby, the Japanese restaurant business operator, as its mode of entry into Japan. I argue that this choice was appropriate, because Starbucks could gain benefits in terms of resources and local knowledge from Sazaby. At that time, Starbucks did not have enough resources, such as human resources, to operate an international business. Starbucks also did not have enough local knowledge that can be used for location selection and local

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