Starbucks in Japan

1105 Words Oct 28th, 2014 5 Pages
13716002514600Case Study –
Starbucks in Japan 00Case Study –
Starbucks in Japan 2775585164592000
Executive Summary
Thirty years ago, Starbucks was a single store in Seattle’s Pike Place Market selling premium-roasted coffee. Today it is a global roaster and retailer of coffee with some 17,000 stores, 40% of which are in 50 countries outside the United States. In 1995, with 700 stores across the US, Starbucks began exploring foreign opportunities. The first target market was Japan. The potential for coffee sales in Japan is significant. The Japanese economy is the third to the United States and China with a gross domestic product (GDP) of U.S. $5.96 trillion in 2012. Starbucks Coffee Japan, Ltd. is a major operator in the Japanese
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Starbucks maintains the same corporate image and customer service in all their stores all over the world, they also adapt their design and food and beverage offerings to become more relevant to the specific country or culture where they are.
Research and Development: Starbucks 's organizational culture is innovation and creativity. This is evident through the continuous developments of new and exciting products, for example, the new 4-cup thermal coffeemaker and the Starbucks 'Double Shot ' Espresso beverage. Depend on their diversify products categories, Japanese customers can purchase Starbucks coffee beans, packaged food, and coffee-making equipment, as well as fresh pastries and sandwiches.
Human Resource Management: Employees are their valuable resources. All employees at Starbucks are referred to as "partners", no matter what job position they occupy. Starbucks is proud to note that it was again rated as on of the best companies to work for by Fortune magazine. Starbucks provide health insurance and stock options, and so forth.
Weaknesses of Starbucks Japan
High cost: Profits from the Japanese venture will not be visible for several years. Operating costs in Japan, such as rent and labor, are extremely high, and Starbucks will also have to pay for coffee shipment from its roasting facility in Kent to Japan. Retail space in downtown Tokyo is also more than double that of Seattle’s

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