Starbucks in Japan

1077 Words Aug 11th, 2014 5 Pages
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 coffee store (retail sales of coffee and related goods and equipment) industry and has a paid-in-capital
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To make sure the Japanese operations replicated the “Starbucks experience” in North America, Starbucks transferred some employees to the Japanese operation. The licensing agreement required all Japanese store managers and employees to attend training classes similar to those given to US employees. The agreement also required that stores adhere to the design parameters established in the US. In 2001, the company introduced a stock option plan for all Japanese employees, making it the first company in Japan to do so. Skeptics doubted that Starbucks would be able to replicate its North American success overseas, but by the end of March 2013 Starbucks’ had some 985 stores and a profitable business in Japan.

Strengths of Starbucks Japan
Operation: Fast store opening penetrate local market. Starbucks developed the brand outside the Company-operated retail store environment though a number of channels. They are able to reach customers where they work, shop, and travel. Until now, they opened nearly 1000 stores in Japan.
Marketing and Sales: When Starbucks first opened its first branch in Tokyo’s upscale Ginza district in August 1996, it was a relatively new concept for coffee drinkers in Japan who were used to sitting in dimly lit shops while sipping from small cups of caffeine, and oftentimes surrounded by people who are smoking. But as soon as stores started opening, they drew in huge crowds with their comfy sofas,

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