Starbucks' International Operations|Business Strategy|Case Study|Case Studies

Starbucks' International Operations

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Case Details:

Case Code : BSTR058
Case Length : 12 Pages
Period : 1982 - 2003
Organization : Starbucks' International
Pub Date : 2003
Teaching Note : Available
Countries : USA
Industry : Food and Beverage

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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In fiscal year 2005, Starbucks' revenues from international operations formed 16% of the company's total revenues. During the year, the company had opened 1,672 stores around the world, including the first ones in the Bahamas, Jordan and Ireland.

By early 2006, Starbucks had more 11,000 stores around the world. The company announced that it was looking at other new markets for expansion. It had identified India as one of the potential markets, and was targeting metros like Delhi, Mumbai and Chennai as the entry points into the market. Starbucks also announced that it was looking at Brazil and Russia as other potential markets in 2006-2007. Analysts pointed out that Starbucks should rethink its entry strategy in international markets and focus on pricing to achieve real success. They also cautioned Starbucks against the external risks resulting from volatile political and business environments across the world...

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Exhibit I: Modes of Entry into International Markets
Exhibit II: Types of Risk in International Business
Exhibit III: Starbucks: Annual Income Statement

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