Starbucks global expansion strategy

Essay by athorn343 October 2007

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As Starbucks moves into new markets all over the world, it continues to build its brand through the delivery of the Starbucks Experience. "Our success at every market that we have entered into reiterates our commitment to become a great, enduring company with the most recognized and respected brand in the world, known for inspiring and nurturing the human spirit. Our Mission: to be a global company, making a difference in peoples' lives by leveraging our brand and the coffee experience to foster human connections." (' development strategy adapts to different markets addressing local needs and requirements. Starbucks currently uses three business strategies: joint ventures, licenses, and company-owned operations.

Starbucks chooses international business partners based on the following items: shared values and corporate culture, strong multi-unit retail/restaurant experience, dedicated human resources, commitment to customer service, quality image, creative ability, local knowledge, brand-building skills, and strong financial resources. To date, Starbucks has expanded into a diverse range of international markets that have fulfilled these criteria.

Starbucks coffee retail locations are currently in the following countries: Australia, Austria, Bahrain, Canada, Germany, Hawaii, Hong Kong S. A. R., Israel, Japan, Kuwait, Lebanon, Malaysia, New Zealand, Oman, Beijing, Shanghai, Philippines, Qatar, Saudi Arabia, Singapore, South Korea, Spain, Switzerland, Taiwan, Thailand, United Arab Emirates, United Kingdom, and, of course, the US.

Starbucks decided to enter the international marketplace for three primary reasons: 1)To prevent competitors from getting a head start; 2) To build upon the growing desire for Western brands; 3) To take advantage of higher coffee consumption rates in different regions of the world.

It was felt that Starbucks' strategic direction would allow it to sustain growth by continuing the development of the Starbucks brand image and by increasing its presence in different markets. Starbucks was growing very rapidly and was consistently evaluating...