Starbucks and Analysis of International Market Accessing

Starbucks is a “premier roaster, marketer and retailer of specialty coffee” (Marketline 2012). This company is globally recognized because of their vast amount of stores, consisting of more than 17,000 retail stores in over 55 countries. Most retail stores are in highly populated areas, like “downtown and suburban centers, office buildings, university campuses and in select rural and off-highway locations” (Marketline 2012).

The final project is going to be about the market entry of Starbucks into China. This project will focus on gauging the success of the company's market entry strategy thus far. Starbucks has announced in a press release that it believes China will be its #2 market by 2014, and the company has been one of the most successful American companies in that market (Starbucks, 2012). The company entered the Chinese market in 1999 with a store in Beijing. This followed the acquisition of greater knowledge about Chinese business culture through outlets in Taiwan. The company initially used a licensing agreement to enter the Chinese market (Starbucks, 2010).

With the first coffee shop opened in Sydney CBD, Starbucks entered into Australian market in July of 2000 and then expanded rapidly to 85 coffee shops in the following years. However, in August of 2008, Starbucks Coffee Company Australia announced to shut down more than 60 of its 85 coffee shops and to date it has scaled down to 22 opened in Sydney, Brisbane, the Gold Coast, the Sunshine Coast and Melbourne (Starbucks 2010).

In all companies, there are many strengths, weaknesses, opportunities, and threats. Starbucks is one of the world’s leading coffeehouse chain. The beginning of Starbucks was in 1971, the first store ever to open in Seattle’s Pike Place Market. Thanks to Howard Schultz the founder of Starbucks the beginning was far from the end. Schultz was bright and new that Starbucks would have a future. In 1987, seventeen stores open in Chicago and Vancouver. 1988, thirty-three stores were open, Starbucks committed to giving their employees full/part time jobs with full health benefits. In 1991, Starbucks first store in an airport, having 116 stores open at the time. 1994, 425 stores opened, first drive-thru was established. In 1995, they began selling the world’s most popular and favorite drink the Frappuccino, with 677 stores opened. 1996, the first store opened outside of North America in Japan and Singapore, having 1,015 stores. In 1998, Starbucks partnership with Magic Johnson, opened stores in underserved neighborhoods, with 1,886 stores. In 2002, the best thing any store can have is Wi-Fi, Starbucks launches free Wi-Fi in stores, over 5,800 stores. In 2006, Starbucks launches the industry’s first paper beverage cup containing post-consumer recycled fiber, with 12,440 stores opened. In 2008, Starbucks adopted a new mission statement, “To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time.” With 16,680 stores open. In 2011, launch first annual

For many multinational companies, they have begun global expansion. The Asia Pacific region is a potential market to get more profits. Starbucks is one of the international companies, who expand the market in the AP. This report will introduce Starbucks firstly, and then articulate the strategies of the company and use SWOT to analyze the internal and external environments. Some recommendations for Starbucks managers are given according these analyses.

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.

High pricing from the competitors create a pricing war by driving down the profit margins when increasing the market share.

Starbucks as transforming coffee into a ‘Lifestyle’ and the simple act of buying coffee into an event, consequently they have built a strong community of loyal customers willing to pay premium prices.

With the financial system in strife, the stock market place tanking, it is imperative to commence your day with an enjoyable cup of coffee to endure some these life challenges. Gratifying everyday moments is just one way that it appears that Starbucks words denotes that they are not retailing solely coffee. They declare to be offering the coffee experience. The coffee bars that promote specialty coffee likewise gives consumers a setting where they can be able to be themselves. Starbucks presents themselves as the third location between home-based and office, where one can exodus, contemplate, study, converse or listen. They have developed into one of the prevalent competitors in the coffee commerce and appears to be still exploring for possibilities to magnify themselves. From a Christian worldview Mark 6:39 states, “Then He commanded them to make them all sit down in groups on the green grass” (NKJ). Therefore, when situations seem impossible for an organization, it is possible when God is included in the plan.

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.

As a consultant for Starbucks, it was interesting to review a multinational company that operates in 62 countries and has 19,000 stores (Starbucks Corporation, 2013). It is apparent that success lives within the offerings of high quality coffee with a 3 billion base of customers enjoying the products. The company has a strong commitment to buying and serving high-quality coffee and consumers have savored the coffee and the prestigious brand. Starbucks arsenal not only consists of the signature Starbucks brand but also goods and services under names such as Teavana, Tazo, Seattle’s Best Coffee, Starbucks VIA, Starbucks Refreshers, Evolution Fresh, La Boulange and Verismo. All of the intricacies that make Starbucks a big success also offer challenges to the company that puts more weight on an effective strategic management process.

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.

Factors in the global environment provide both opportunities and strengths for Starbucks. Opportunities such as increased revenues, further expansions, and achieving their goal of becoming the most respected brand worldwide. Starbucks also faced threats. These threats include dealing with growing antiglobalization overseas and their huge risk of less return on each overseas store, this deriving from overseas operations being run by local partners instead of Starbucks

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.