The Global Expansion Strategy of Starbucks

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Starbucks Global Expansion Strategy The economic recession has hit many in the United States hard. This has created a situation where many companies are forced to scale back domestic expansion plans because of lower consumer spending. However, the same is not necessarily true for other international markets. In fact, Starbucks is planning an aggressive expansion plan in China for physical expansion, while it is downsizing retail locations in the U.S. Thus, Starbucks is continuing to show signs of strong profit potential, despite the weakening financial economy around the corporation. At home in the U.S., Starbucks' physical expansion strategy is slowing down and being replaced with an increased effort into brand expansion. Essentially, most of the expansion efforts in the United States are focused into breaking into the retail market . The research suggests that there are a number of new branded products to be sold at other retail locations the company is looking to expand upon like Starbucks VIA Ready Brew, rather than opening new stores. Starbucks chairman Howard Schultz stated that the company is now focusing on "leveraging our brand strength through new and existing channels" (Starbucks 2010). Yet, this is still continuing a strong strategy of growth, within both the domestic and international markets, just in a different format than previously. Locations may be downsizing in the United States, but the company is looking into brand expansion, rather than physical
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