The case discusses the international expansion efforts of the global coffee retailer Starbucks. Starbucks had grown in several regions of the world, many of which had historical ties to Western Europe as a coffee heritage. It was also traditionally made tea drinking countries such as Japan and China in question. In implementing its internationalization strategy, the company relies on a set of sound principles that call for astute partner selection, real estate management and administration of the brands … Read more »

The case discusses the international expansion efforts of the global coffee retailer Starbucks. Starbucks had grown in several regions of the world, many of which had historical ties to Western Europe as a coffee heritage. It was also traditionally made tea drinking countries such as Japan and China in question. In implementing its internationalization strategy, the company relies on a set of sound principles that call for astute partner selection, property management and management of brands. While the company had experienced critical success factors in most major markets overseas, it appeared to be major challenges in each region. For example, in Japan, had sales revenues declined and thus the profitability. New generic competitors had emerged and begun had many doubts about the validity of Starbucks’ market saturation strategies. In emerging markets such as Mexico, China and India, the company saw very good potential, but the rosy picture was somewhat dampened by the ability of the consumer, in the vicinity of $ 3 for a cup of coffee when the local versions at $ 0.50 in retail pay. The case with several questions regarding the future of the Starbucks in the global arena: if it does not change its new store growth strategy, whether to reconsider its uniform pricing policy in emerging markets where affordability was of the utmost importance, and where the next big push should. be
«Hide

from
Michael Moffett
Kannan Ramaswamy
Source: Thunderbird School of Global Management
15 pages.
Publication Date: Apr 28, 2003. Prod #: TB0153-PDF-ENG
Planet Starbucks (B) HBR case solution