Market Entry Strategies of Starbucks | Marketing Management Case Studies

Details

Case Code : CLMM030
Publication date : 2005
Subject : Marketing Management
Industry : Food and beverages
Length : 04 Pages
Price : Rs. 100

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Key words:

Starbucks, International Food Retailing, Asia Pacific Rim, Consumerism, Western Lifestyles, Joint Ventures, Licensing, Wholly Owned Subsidiaries, 'No Smoking' Rules, Sazaby Inc, Local Partner, Coffee Drinking Culture, Europe, Self-Service Mode, Middle East

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

Abstract:

Starbucks is one of the leading international food retailing chains. The caselet examines the market entry strategies used by Starbucks in various countries. The caselet discusses the evolving coffee drinking culture around the world and the role of Starbucks in the growth of this culture. The caselet outlines the efforts of Starbucks in customizing the service offerings according to local customer needs and culture.

Issues:

   » Modes of entry into foreign markets
   » Design of service offerings
   » Challenges in international food retailing

Introduction

Starbucks is one of the leading international food retailing chains with US$ 4.1 bn revenues for the fiscal year 2002-2003. It has 7,225 outlets the world over. With saturation in the North American markets, Starbucks started expanding internationally.

It decided to enter the Asia Pacific rim markets first. Growing consumerism in the Asia Pacific countries and eagerness among the younger generation to imitate western lifestyles made these countries attractive markets for Starbucks.

Starbucks decided to enter the international markets using a three - pronged strategy - joint ventures, licensing and wholly owned subsidiaries...

Questions for Discussion:

1. What made Starbucks enter the international market?

2. What strategy is adopted by Starbucks for international expansion?

3. What are the various risks that a company faces while entering the international market? What are the risks and difficulties that a food service company like Starbucks may face?