This report tells that Starbucks is a retail coffee outlet that has emerged as one of the Fortune 500 companies in 2003. It has been pursuing a strategy of international expansion in order to promote growth. This is because while the domestic American market…
Sweden is an affluent European nation that is a part of the European Union, Bulgaria is an East European nation that has a much lower per capita income and is not yet a member of the European Union, although it is provisionally set to become one in 2007, while Nigeria is an African nation that is the poorest among the three countries.
This Report will select one of these countries as potentially the best country that Starbucks could consider entering and then outline an entry proposal strategy that Starbucks could apply in order to derive the best benefits from that potential market.
In terms of worldwide coffee consumption, Scandinavian countries (Finland, Denmark, Sweden, and Norway) “continue to be the areas with the highest consumption (Reporter, 2007). For this reason, Sweden offers enormous potential for Starbucks coffee because it is one of the highest per capita coffee consuming countries in the world, which is estimated at 10 kilos for an 8 million population. (McCabe, 1994). According to Datamonitor reports, the Scandinavians are coffee fiends and the average Dane drank his/her way through 7.5 kilos of coffee in 2002, which is about 75 regular sized cups of coffee (www.beveragedaily.com).
Sweden follows this trend closely and one of the reasons that have been put forward for high consumption of hot coffee is the cold weather in the country. Additionally, the Datamonitor report states that this trend could “partly be explained by high alcohol prices – these mean caffeine can be a far more cost-effective way of getting wired than drinking” since coffee is also much cheaper (www.beveragedaily.com). However, there is one aspect that must be taken into consideration in countries such as Sweden, which is established coffee drinkers such as France and Italy. ...
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“Starbucks International Operations Essay Example | Topics and Well Written Essays - 4750 Words”, n.d. https://studentshare.net/business/331015-case-study-starbucks-international-operations.
This practice ensures that the identity of the brand, as differentiated from other brands in the industry, is secured. However, in the particular case licensing could not secure that the firm’s formula would be fully applied in its new stores. Such perspective would set the firm’s success in risk.
Internationalization of business is important in order to create a market for the product or to utilize the market demand of a product which is increasing by establishing an operation plant in other country. Improvements in global telecommunications and transport networks along with liberalized trading policies, the growth of international ventures have attracted numerous researches (Fan and Phan, 2007).
United States houses 13,279 of these coffee shops. 1,324 stores are in Canada while Japan has 9789 stores. Further 851 coffee stores are in China with additional 806 Starbuck coffee shops in the United Kingdom. South Korea houses another 556 stores while Mexico has established 377 stores of the company.
The global connectivity has increasingly created the platform for evolution and dispersion of various kinds of global trends in the developed and the developing markets around the world. Because of the emergence of global trends, consumers in the various markets around the world are becoming increasingly demanding in nature and this is creating a significant amount of business opportunity.
In such context, Roby (2011) stated that technically, Starbucks should never be able to attract customers for day after day with its overpriced coffee but in practical situation, millions of people across different parts of the world visit Starbucks to enjoy the holistic experience despite paying high price.
Starbucks is full of warm, rich colors and shapes and is set up so customers have a lot to look at while waiting for their order. It is visually stimulating in a way that is pleasant to most people. Compare this to a typical coffee shop, where the customer is often subjected to bright, harsh lighting and is often in the way of traffic flow, making him or her feel vaguely uncomfortable.
Comparative advantage is an economic principle that states that each good should be produced by the country that has the smaller opportunity cost of producing the same good. David Ricardo’s writings in early 19th century about comparative advantage
In this topic two countries of choice: Uganda and Peru will be discussed majoring on coffee that comes in these countries. Another topic is international operations strategy where the country of choice will be explored more and
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