Starbucks and Caribou Coffee: A Comparative Analysis

1664 Words Jan 14th, 2018 7 Pages
Starbucks operated internationally from an early point in its history, opening its 10th store in Vancouver its second market was international, before anybody in the US outside Seattle had heard of Starbucks. Now the company operates around the world. While its coffee business has not generally been built on the basis of acquisitions, it has attempted to complement that business and enter new ones with a variety of acquisitions over the years. Two recent ones were Teavana, a tea shop (Patton, 2012) and Evolution Fresh, a juice chain (Horovitz, 2012). In contrast, Caribou Coffee has remained a regional player, expanding slowly, with no international operations and without any major acquisitions. This paper will compare these two companies in terms of their expansion strategies, especially with respect to mergers and acquisitions.

Starbucks
The decisions to acquire Evolution Fresh and Teavana were born of the same mindset so they can both be considered here. The framework for Starbucks to diversify geographically has typically been to either launch greenfield in a foreign country or to work with local franchisers to build out a presence in a foreign market quickly. Diversification into related businesses has typically used these same approaches starting a coffee pod business to compete with Green Mountain, partnering with Pepsi to put beverages into grocery stores. However,…
Open Document