Starbucks in Japan

* Starbucks has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may falter over time.

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.

RESUME INTERNALIZATION AT STARBUCKS ? Index Starbucks Journey Porter’s five forces model for Starbucks Starbucks - SWOT Performance Analysis and Learning Next Steps Starbucks Journey 1996 - 1999  First outlets outside North America, in the Far East Japan and other countries in the region  Starbucks introduced espresso drinks for the grocery channel in partnership with Pepsi-Cola  Starbucks introduced a home espresso machine in 1997  Starbucks signed a licensing agreement with Kraft Foods to market & distribute the Starbucks specialty coffee beans more than 25,000 American grocery sector 1987 Howard Schultz Bought Starbucks Store and renamed the II Giornale store as Starbucks 2010 • The world

starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One

Starbucks advertises two essential mission statements. First and foremost, it strives to “establish [ourselves] as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while [we] grow(s).” (Starbucks) Reflective of its mission, Starbucks bases its strategic campaign and communications on six indispensable philosophies; structuring a pleasant work environment in which employees are treated with “respect and dignity,” incorporating diversity in all business aspects, purchasing, roasting and delivering fresh coffee, retaining satisfied customers, giving back to the community and environment, and developing

In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.

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

Starbucks is a unique organization with a unique structure (Gallos, 2012), "Starbucks is an amazing success story. In the 1990’s, it was opening a new store almost every day and is now the world’s largest coffeehouse company with more than 18,800 stores in 55 countries and more than 10 billion U.S. dollars in annual revenues ” (1). Our company

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.

The company has a focus on innovation through an emphasis of introducing new products and coffees such as “instant coffee” Via which generated a large sales growth of over 200 million. These new products consistently help Starbucks evolve as a

Starbucks extends their coffee experience to everyone: kids, teenagers and adults. Part of their success comes from their ability to create new products that fit the culture of the country. In Japan, for instance, Starbucks launched green tea lattes, which later became popular in other countries (Allison). Starbucks is well established in countries like Canada, Japan, and the United Kingdom. In the US alone, Starbucks sells 4 million cups of coffee per day (Horovitz). Their products and services have transformed the way customers view coffee. Changing the way customers order, Starbucks makes it very chic to purchase custom drinks. Starbucks is like no other coffee shop: the dimmed lights

Starbucks is one of the largest coffee shop chains in the world. In 2005 it was the leading coffeehouse retailer in the world with operations in 34 countries outside the US, counting 10.241 coffeehouses. Starbucks began its international expansion with Japan in 1995. We think Starbucks is a global company. Throughout the answer we will use Starbucks’ value chain activities to explain why Starbucks can be considered a global company.

The majority of Starbucks’ sales were made with company-operated retail stores, but also 15% of the sales were made by specialty operations such as selling coffee beans to hotels and airlines or revenues from licensing agreements. Starbucks also has a joint venture with PepsiCo and an alliance with Dreyers Grand Ice Cream with whom they introduced the Frappuchino-line. In 1995, when the US market almost reached saturation, Starbucks Coffee International was forced to concentrate on international operations.The strategy to enter a foreign market was mainly joint venture, in some markets they also used licensing as entry strategy. In 1995 the first joint venture was formed with SAZABY INC. to enter the Japanese market. More Asianpacific countries and later European countries followed. Starbucks Mission Statement: Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow. The following six guiding principles will help us measure the appropriateness of our decisions:

There are plenty of opportunities which exist for Starbucks in the international markets. In countries with growing economies, such as the BRIC nations (Brazil, Russia, India and China), there are growing upper and middle classes that want to spend money on specialty coffee. Some of these countries are traditionally “Tea Drinkers” that are expanding their tastes to include coffee.

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 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 had huge potential to be profitable. Starbucks chose a joint venture with Sazaby, the Japanese restaurant