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Starbucks International Operations - Essay Example

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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…
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Starbucks International Operations

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. ... Read More
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