Threats And Threats Of Starbucks

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

Globalization is what describes the interconnectedness of the world as a whole. In today’s world we are more connected to other nations and cultures than ever before. We can travel all over the globe for what is usually a reasonable price. With this ability to be connected worldwide, we also have opportunity to expand our business as well our ethical standards to new nations around the globe.

Because of globalization, businesses are open to do business in new markets and improving profits. Also because of globalization, companies are faced with different cultures, religion and norms. For a company to do business in another country, a manager needs to understand the differences associated with the host country. "Globalization is defined as this interdependency of transportation, distribution, communication, and economic networks across international borders" (Gibson, Ivancevich, Donnelly, &

In order to cut overhead costs Starbucks merged with other retail locations, such as Costco, Target, Omni hotel, and resorts, and online at amazon.com. Even though Starbucks expands globally one of the major risks because of the recession, was increasing coffee prices. Starbucks faces many other challenges, such as lower wages with employees, and frustrated store managers. Coffee is the main source of why they call it Starbucks. The major focus is the quality of improving their coffee and customer service instead of raising their prices on coffee.

Barriers to entry for coffee retailers are low, hence increasing the threat of new entrants. Equipment, facilities, furniture, etc. can be leased by new coffee retailers, thus, reducing initial capital expenditure and upfront investment. Since the industry is high fragmented at the bottom levels, new players can create and compete in niche areas within the market. However, small players may not be able to compete with the major players in the industry who have successfully achieved economies of scale and high degree of operational efficiency. Furthermore, consumers may have a strong association and preference for a brand such as Starbucks and may be reluctant to switch to another new brand of coffee.

Starbucks opportunities are; entry into the health and wellness space, growing presence in certain Asian markets, growing their mobile commerce market, and growing their office coffee marketplace. Their threats are extreme competition and compliance costs associated with government regulations (MarketLine 27)

Globalization changes many concepts in the international trading and forced all international companies to change their concepts in marketing to survive, therefore, globalization has affected strategically the process of marketing on the global scale whether directly or indirectly especially if we take account the spread use of the Internet which is now considered one of the most important tools of globalization in the economical field which marketing processes comprise one of its basic elements.

Globalization is the latest revelation in the ever-changing world. It has become a modern trend and its effects have continually shrunk the earth into a global village. In the contemporary world, it is now easier to operate between countries; in essence, live in one country and have a business in another country. The rapid changes have been facilitated by the advancement in technology. Additionally, the continuous developments in communications, information technology (IT) as well as in the transport sector have all assisted its growth. The greatest beneficiaries of globalization are the large-scale multinational enterprises (MNEs), international business professionals and tourists among others.

Now, we live in a world of changes and developments due to globalization as globalization has made the world lives in a small village through modern technology and progress in all social and economic fields, technological, and the reason for this is that people are now able to communicate with each other through a variety of devices of modern communication, it is the most important developments in the world factors are the strategies developed by the companies to reach customers and make every needs and feel good through to provides companies of products and services, so now it's a large group of companies in the market every company have objectives and strategy of seeking to achieve, now become a competition for that greatly

Globalization is the increasing interdependence and connectedness of the world, its businesses and it markets, as well as flow of goods, ideas, technology, people etc. This phenomenon has increased vastly over the years due to technological advances, telecommunications and internet. As the world becomes a global economy, countries have the opportunity to advance more but with the catch that there is also increased competition. Thus as it becomes more common and powerful a feature, it also has some resistance as well. (InvestorWords, n.d.)

Since its foundation in 1971, Starbucks has been working uncompromisingly to achieve the company objective of becoming the world's leading coffee brand. Having gone through various stages of growing pain, today the Company is operating with over 10,000 stores in 37 countries. Starbucks' success was mostly a direct result of its aggressive expansion plan, that consequently turned the Starbucks coffee beverages into a most familiar and popular world-leading brand. Although Starbucks has been successful over the past 34 years, there are some potential drawbacks as identified on this Marketing Audit that might warrant some careful

Starbucks does more than just sell coffee in the retail store. The company has worked over the years to bring their products to the consumer in the grocery store, hotels, and even at home. Such products include: Frappuccino, Doubleshot espresso, super premium ice creams, and VIA coffees. By broadening the companies market, Starbucks was able to overcome the recent recession. During the recession, the company had to find new ways to keep customers coming back. Value meals were created, a loyalty program was adapted, and customers could purchase and brew Starbucks coffee at home.

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

By now, most Americans must have heard or be familiar with a chain of coffeehouses, named Starbucks. Established in 1971 as a local coffee bean roaster and retailer, Starbucks has expanded rapidly. By successfully adopting Italian coffee culture into a variety of beverages such as brewed coffee, espresso, teas, Frappuccinos and related products such as music CDs, pastries or ice creams, the Seattle-based company has reported USD 7.9 billion in revenue with 22 percent annual growth (Starbucks, 2006) . Operating 13,168 stores in 41 countries, Starbucks has, inarguably, become one of the largest and most recognizable coffeehouses all over the world (Harrison & Enz, 2005). Meanwhile, the company still targets for operating 30,000 stores

The key term globalization was chosen for this research paper due to the significant role it plays in the business world. Business professionals need to have a broad understanding of how globalization impacts the economy and creates different interactions among nations. By immersing themselves in how globalization functions, business professionals can make effective and successful investment, marketing, and management decisions. Furthermore, the advances of technology have opened many doors for businesses to expand and seek greater opportunities internationally to maximize production and profits. Therefore, having a clear understanding of globalization and all it encompasses is key to success