Starbucks enjoyed a tremendous growth in the past two decades. In 2007 it had a global reach of more than 17,000 outlets in 56 countries. However, Starbucks’ triumph was slowed by three forces between 2007 and 2009: increasingly intense competition, rising coffee bean prices and a global recession. In order to remain profitable, the company started to scale back its overseas operations. In 2010, Starbucks was at a critical strategic decision: should the company back i … Read more »

Starbucks enjoyed a tremendous growth in the past two decades. In 2007 it had a global reach of more than 17,000 outlets in 56 countries. However, Starbucks’ triumph was slowed by three forces between 2007 and 2009: increasingly intense competition, rising coffee bean prices and a global recession. In order to remain profitable, the company started to scale back its overseas operations. Should the company continue its international expansion and once again step up their commitments in overseas markets: In 2010, strategic decision was faced with a critical Starbucks? If so, what approach should take over the company? Had the pace of Starbucks’ internationalization (ie, the rate of new store openings abroad), the rhythm of internationalization (ie, the regularity with which foreign shops were open), and geographic part of its internationalization (ie, the number of new countries entered) had a impact on the performance of the company over the past few years? Starbucks could learn from his previous internationalization in the coffee industry, to lead its future international strategy?
«Hide

from
Rob Alkema,
Mario Koster,
Christopher Williams
Source: Ivey Publishing
16 pages.
Release Date: 17 September 2010. Prod #: 910M73-PDF-ENG
Continue internationalization at Starbucks HBR case solution