Starbucks global expansion strategy

983 WordsOct 4, 20074 Pages
As Starbucks moves into new markets all over the world, it continues to build its brand through the delivery of the Starbucks Experience. "Our success at every market that we have entered into reiterates our commitment to become a great, enduring company with the most recognized and respected brand in the world, known for inspiring and nurturing the human spirit. Our Mission: to be a global company, making a difference in peoples' lives by leveraging our brand and the coffee experience to foster human connections." (www.starbucks.com)Starbucks' development strategy adapts to different markets addressing local needs and requirements. Starbucks currently uses three business strategies: joint ventures, licenses, and company-owned operations.…show more content…
Because Starbucks wanted to control the business strategy in the Japanese market, it changed the strategy by establishing joint venture with a local retailer, Sazaby, Inc. Then, Starbucks licensed its business format to the joint venture company. After entering into the Japanese market, Starbucks increased the pace of international expansion significantly. In 1998, Starbucks acquired Seattle Coffee Company in the United Kingdom, a chain with more than 60 retail locations. That same year, it opened stores in Taiwan, Thailand, New Zealand, and Malaysia. In 1999, Starbucks opened in China (Beijing), Kuwait, South Korea, and Lebanon. In 2000, it entered another seven markets (China - Hong Kong and Shanghai, Dubai, Australia, Qatar, Saudi Arabia, and Bahrain). It added three markets in 2001 (Switzerland, Israel, and Austria). In 2002, another nine markets were opened (Oman, Spain, Indonesia, Germany, Southern China - Macau and Shenzhen, Mexico, Puerto Rico, and Greece). In 1999, the opening of Starbucks in Beijing's Forbidden City, also known as the Palace Museum, caused uproar in China with the outraged local media reporting that 70 percent of people would rather not sip the American chain's frappucinos in the footsteps of the Son of Heaven. Many locals were incensed by the U.S. chain's opening in the ancient home of China's emperors and considered it an act of American economic and cultural domination in one of their proudest national

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