Essay on Starbucks: Going Global Fast

911 Words Jan 4th, 2012 4 Pages
1. Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets.

Controllable
In Italy: Price (Italian coffee bars prosper by serving food as well as coffee, an area where starbucks still struggles. Also Italian coffee is cheaper than US java say, Italian purists, much better. Americans pay about &1.5 for an espresso, on the other hand northern Italy the price is 67 cents, in the south just 55 cents.

Uncontrollable
In Japan: Competition among rival shops in Japan and the economic depression.
In France: Political and legal bindings. (France’s arcane regulations and generous labor benefits).
In Vienna: Culture (young are always enthusiastic about new and they embrace the new. So,
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They can also change their pricing strategy.
*As coffee is the core product of them to serve they should give more focus on improving the quality of coffee. They may make arrangement for some other items beside coffee as well.
*As Starbucks is going abroad to expand its business with local partners of that region there risk of SRC and ethnocentrism. It can be over come through proper adjustment keeping SRC and ethnocentrism away in decision making.

3. Critique Starbucks’ overall corporate strategy.

Starbucks are incurring losses for mismatch between their corporate strategies and the customer’s expectations.
*When Starbucks is blanketing some specific cities for dominance, still eight states in the United States are with no Starbucks stores. Starbucks free cities are, Butte, Mont, and N.D.
*they believe that the more the outlet the more the sale. Basing on this strategy they are increasing their outlets day by day in their domestic region as well as abroad, without satisfying the customer’s need, by increasing the numbers they will not be able to succeed in their mission.
*Starbucks target customers are the baby boomers or older generation, it has no differential pricing for the Generation X or younger generation.
*Though Starbucks fully control its business in the USA, but it has franchisee outside the USA. Depending on the

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