Starbucks Case Study Essay

764 Words Jun 22nd, 2013 4 Pages
Case 1-1 Starbucks- Going Global Fast
1. Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets.
Answer: The controllable factors that I believe Starbucks has encountered entering the global market are similar to the controllable factors they have encountered in their domestic market. The controllable factors are product, price, place, and promotion. Starbucks has millions of consumers around the globe and is able to adjust to fit the different tastes and expectations of different cultures based on their products, prices, places Starbucks is available and how Starbucks markets themselves. The marketing research group of Starbucks also can evaluate to make sure the products they
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Starbucks could also focus on reducing employee disruption, which would increase the quality of service to satisfy customers. The fact that mostly all of the younger generations don’t drink coffee, Starbucks should provide other items besides coffee to attract that generation to the business as well other then the older generations. When Starbucks goes abroad and expands with local partners they run into the risk of self-reference criterion. A potential solution to solve this problem is to make proper adjustments, keeping self-reference criterion away in decision making for new Starbucks.
3. Critique Starbucks’ overall corporate strategy.
Answer: There are eight cities in the US and Canada that doesn’t have any Starbucks stores. If there were Starbucks in those cities there would be more customers, which would increase Starbucks income. Starbucks is considered a global company but the amount of money spent by them does not match with their global status. Starbucks barely spends any of their revenue on advertising while other companies spend a good percent of their revenue on advertising. If Starbucks would spend more on advertising and get their name around the world, as they become a bigger global company they will earn more customers. Starbucks has created entry barriers for competitors by using predatory real-estate strategies. According to (vizettes.com) a

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