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Starbucks Foreign Entry Strategy Forty years Starbucks was a single store in Seattle's Peace Market selling premium r ed coffee Today is a global rooster and retailer of coffee with some

Starbucks Foreign Entry Strategy Forty years , Starbucks was a single store in Seattle's Peace Market selling premium r ed coffee. Today is a global rooster and retailer of coffee with some 24.464 stores, 47 percent of which are in 63 countries outside the United States China (2,204 stores). Canada (1.418 ) Japan (1.160 stores). South Korea (72 Hores), and the United Kingdom (898 stores) are large markets internationally for Starbucks. Starbucks et out on its current course in the 1980s when the company's director of marketing. Howard Schulte, came back from a trip to Italy enchanted with the Italian coffeehouse experience. Schulte, who later be came CEO, persuaded the company's owners to experi ment with the coffeehouse format and the Starbucks experience was born. The strategy was to sell the comp y's own premium roasted coffee and freshly brewed espresso style coffee beverages, along with a variety of past coffee accessories , and other products, in tastefully designed coffeehouse setting. From the outset the company focused on selling a third place expen ence mother than the coffee. The formulated to spectacular success in the United States, where Starbucks went from obscurity to one of the best known brands is the country in a decade. Thanks to Starbucks coffee more became places for tioncharting with friendl reading the newspaper, holding business meeting or (more recently browsing the making it the first company in Japan to do so Steps doubted that Starbucks would be able to replicate North American success overseas, but now in 2018 Star bucks has 1,160 stores and a profitable business in Japan. After Japan, the company embarked on an aggressive foreign investment program. In 1996, k purchased Seattle Coffee, a British coffee chain with 60 retail stores, for $84 million. An American couple, originally from Seattle, had started Seattle Coffee with the intention of establishing a Starbucks like chain in Britain. In the late 1990. Star bucks opened stores in Taiwan, Singapore. Thailand. New Z ealand, South Korea, Malaysia, and most significantly China. In Asia, Starbucks' most common strategy was to license its format to a local operator in return for initial l icensing fees and royalties on store revenues. As in Japan, Starbucks insisted on an intensive employee training pro gram and strict specifications regarding the format and out of the store Hy 2002, Starbucks was pursuing an aggressive expen s ion in mainland Europe. As its first entry point, Star bucks chose Switzerland. Drawing on its experience in Asis, the company entered into a joint venture with a Swiss company, Bon Appetit Group, Switzerland's largest food service company Bon Appetit was to hold a y wake in the venture and Starbucks would license is format to the Swiss company using a similar agreement to those it had used successfully in Asia. This was followed by it wture in other countries. United Kingdom leads the change in Europe with 898 Starbucks stores ly 2014 Starbucks emphasized the mapid growth of its operations in China, where has 2204 wore and out the 500 wore with three years making China by far the second largest market for Star bucks behind the US The access of Sarbucks in China bucks be p loring foreign market opportunities. The first market was Japan. The company established a twenture with local Sabyle Each h a 50cent in the wo r ks Coffee of lapan. Starbuckst y ves SIO on in this w a s first for direct investment The wa cha Starbucks presence in Japan To make sure the Japanese r eplicated the "Starbucks experience in North America, Starbucks lan d The Japane s dema n d ing the US The C h e the U S 2001, the company ho t the one of month China is very different from that of the cast consumer sending po n d o with that of the coastal cities. To deal with this complexity Surbucks or threaten the north with e Mel Dacoffee in the east with an based and the south with Hong Kong Ma hartere d l per that haped the company is into that and preferences of local Chinese customers,

Aug 17 2020 View more View Less

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