Starbucks : Internationalisation Process to Eastern Europe

Essay by andronicus85University, Bachelor'sA, December 2004

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TABLE OF CONTENTS

STARBUCKS CORPORATION PRESENTATION 4

1. STARBUCKS COMPANY 4

1.1. Company Overview 4

1.2. Business Description 4

1.3. The core product 5

1.4. A few financial data 5

1.5. Starbucks mission statement 7

1.6. The vision 7

1.7. SWOT analysis 8

STARBUCKS MARKET: THE ANALYSIS OF THE COFFEE MARKET 10

1. INTRODUCTION 10

2. GLOBAL HOT DRINKS MARKET 10

3. THE US HOT DRINKS MARKET IN 2003 12

4. STARBUCKS MAIN COMPETITORS 13

4.1. Competition tree - direct and indirect competition - 15

4.2. Market share 16

4.3. Porter 5 forces Model 17

4.4. The perceptual map 18

THE DECISION WHETHER TO INTERNATIONALIZE OR NOT 20

1. INDICATORS OF INDUSTRY GLOBALITY 20

2. INDICATORS OF PREPAREDNESS FOR INTERNATIONALIZATION 21

3. THE FINANCIAL POWER 22

4. THE NINE STRATEGIC WINDOWS OF SOLBERG 22

5. WHY INTERNATIONALIZE? 22

1. What are the major motives? 22

THE MARKET ENTRY STRATEGY 24

1. WHAT MODE OF ENTRY? 24

2. JOINT VENTURE 25

3. LICENSES 25

4. WHY LICENSEE? 26

THE CHOICE OF THE MARKET 27

1. INTERNATIONAL PRESENCE 27

1.1. Existing partnerships 27

1.2. Regions available 27

2. DECIDING WHICH MARKET TO ENTER 27

2.1. Making the right choice... 27

2.2. Why Eastern Europe? 28

2.3. Overall market power and attractiveness 28

2.3.1. Market attractiveness: The AT Kearney Attractiveness Index. 29

Host Countries People Analysis 29

Host Countries Business Analysis 32

Host Countries Financial Analysis 34

Summary of the evaluation method presented 36

2.3.2. The S. Tamer Cavusgil approach presented in "Guidelines for Exports Market Research" 37

3. CONCLUSION OF THE ATTRACTIVENESS OF THE COUNTRIES 38

MARKET ANALYSIS IN THE COUNTRIES SELECTED 39

1. EVOLUTION OF COFFEE PRICES 39

1.1. Czech Republic 39

1.2. Hungary 39

1.3. Poland 40

2. TRENDS IN COFFEE SALES 40

2.1. Czech Republic 40

2.2. Hungary 40...