Starbucks and Cultural Distance

Starbucks chooses international business partners based on the following items: shared values and corporate culture, strong multi-unit retail/restaurant experience, dedicated human resources, commitment to customer service, quality image, creative ability, local knowledge, brand-building skills, and strong financial resources. To date, Starbucks has expanded into a diverse range of international markets that have fulfilled these criteria. Starbucks coffee retail locations are currently in the following countries: Australia, Austria, Bahrain, Canada, Germany, Hawaii, Hong Kong S. A. R., Israel, Japan, Kuwait, Lebanon, Malaysia, New Zealand, Oman, Beijing, Shanghai, Philippines, Qatar, Saudi Arabia, Singapore, South Korea, Spain,

Starbucks is no doubt a phenomenon in the United States, but the brand wants to expand globally. Opening chains in various global locations such as Japan, Vienna, England; Starbucks wants to reach out to the coffee loving fans everywhere. Nevertheless opening chains globally is not that simple. There are many uncontrollable factors Starbucks need to focus on to make sure they are making profit as well has abiding by the country’s laws and regulations. Going global takes a lot of market research to make sure that the brand will be successful even with uncontrollable factors. Controllable factors can be tailored to fit the needs of each country. Starbucks has to find the happy medium so they don’t lose their identity overseas.

Many multinational corporations in the coffee industry have succeeded tremendously such as Starbucks. Each of these corporations has strategies that helped them continue to expand to nations of different cultures, ethnicities, governmental practices, and locations.

I think Starbucks certainly is a force for globalization, and already is, with presence not just in North America but Canada, Japan, Britain, Thailand, etc and not just because it offers a product (coffee) that is known and sold around the world very well, so it is easier to reach customers because people are familiar with drinking coffee, as a part of the daily basis, and plus the idea of a coffeehouse, a place to go and spend some time with friends, or studying, or even for business meetings is also a hit in a lot of cultures, these are regular activities for a good amount of people, so the market is there, the coffee culture is already there too, Starbucks will have to analyze other type of situations like competitors, or purchasing power of the specific country to determine if

The first factor was “the coffee itself “– Starbucks believed that they offered their consumers with the highest quality coffee which was sourced from Africa, Central and South America, and Asia-Pacific regions. Starbucks tactic was to corner the market by controlling as much of the supply chain as possible and also controlling the distribution of retail stores around the world. Starbucks

     Transnational corporations have had a tremendous impact on the interconnectivity that between countries, corporations, and people on a global landscape. Fueled by capitalistic ideals of increasing profits numerous corporations have expanded there operations into the global marketplace, some with much more success than others. One such transnational corporation that has embodied this pursuit of expansion in domestic and foreign markets for profit is the Starbucks Coffee Company. This company, which finds its roots in the opening of a single retail location in Pike place Market of Downtown Seattle in 1971, has been able to infiltrate into countless foreign domains and grow into a global powerhouse of

The company founded Starbucks has experienced rapid growth since its first store opened in Seattle in March 1971. The impressive expansion over recent years has left it penetrate within the market of the top 100 best global brands of 2012, according to Interbred, and also it has been considered by Fortune magazine as one of the 500 largest companies in the world. Starbucks is now the largest coffee retailer in the world.

Your marketing and advertising program from the company evidences which Seattle-based Starbucks Corporation will be the foremost coffeehouse archipelago throughout the world. The organization at this time features functions inside in excess of forty four nations. Currently company can be likely to available it's retailer inside Aussie. That wishes to deliver nearby Aussie marketplace and its particular younger age group together with standardized goods in the form of caffeine, herbal tea along with broad range of snack foods as well as sandwiches (Vecht, 2006). Due to this kick off, the objective from the company should be to create Starbucks from the Sydney by commencing the test out retailer inside Melbourne. This particular retailer from the company are going to be run by fine-tuning to the requirements from the nearby consumers whilst positioning the core Starbucks strengths crucial.

Starbucks’ opportunities to expand into new markets in order to develop its global market revenues and profit shares.

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

A Senior Thesis submitted in partial fulfillment of the requirements for graduation in the Honors Program Liberty University Spring 2011

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 used many tactics to reduce its distance from foreign markets. Firstly, Starbucks conducted extensive research in each country. They used focus groups, and quantitative analysis, to evaluate local cultural sensitivities and preferences. But it also used specific local adaptations. For

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.