One of the benefits when a business moving from a domestic to an international strategy is the firm can earn a greater return on its investments. This means the firm can realize many advantages on resources and capabilities over its rival.
In 1995, because of the saturation of the United States market, Starbucks, an international coffee house chain, started to expand its business overseas. Starbucks first tested the Japanese market by establishing joint ventures with local retailers. By 2001, Starbucks had more than 150 stores and plans to continue its success at a brisk pace. The company began by entering into joint ventures with local businessmen that allowed Starbucks to retain control and have the benefits of a local operating partner, Starbucks was able to embark on an aggressive expansion campaign, and successfully opened in foreign markets by 2001. This plan made the opening of over 600 stores located out of the United States possible. The decision to expand internationally gave Starbucks the ability to reach a larger market and meet its stated growth goals. more than 200 units in other countries, including China, Japan, Kuwait, Lebanon, New Zealand, Malaysia, the Philippines, Singapore, South Korea, Taiwan, and Thailand.
Prepare explanations of the following as they relate to the International Business Strategy of Starbucks:
* Mission Statement
* Product Strategy
* Distribution Strategy
* Pricing Strategy
Describe the global environment and the markets that are being targeted, including:
* Competitive Environment
* Target Market
* Communication Strategy
Include an explanation of of the impact that culture has on Starbucks’ activities around the world.
Finally, identify the key management issues that Starbucks faces.
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