As such, the strategy allowed Starbucks to sell coffee and related products to the local licensees, which then resold them to customers. However, the company altered its strategy after the disenchantment with some of the straight licensing arrangements. This sought to establish greater control over the expansion strategy, derive the benefits of a local operating partner, and ensure that Starbucks adapts to local market needs in foreign investments.
The Starbucks’ SWOT analysis tells me that the company has the potential and aggressiveness to expand and compete effectively in the industry. With more than 4,600 outlets around the world, the company has a huge market presence that defines its competitive advantage. The experience of Starbucks’ managers derives effective management that helps the company to address different challenges and respond to market trends. Indeed, the company’s expansion strategy is one of the best in the industry subject to its resultant benefits. The company is enjoying huge sales turnover that enhances it financial stability and potential for expansion. The company is maximizing the available market opportunities and has the aggressiveness and potential to invest in more than 15,000 stores outside of the United States. The company hires experienced and highly qualified employees that design and implement its market strategies and address potential challenges. Nevertheless, it is clear that Starbucks’ suffered from the economic depression and the September 11, 2001 terrorist attacks though it has since recovered.
Howard Schultz depicted his leadership in using his Italian coffeehouse experience to persuade Starbuck’s owners to experiment with the coffeehouse format that bore the Starbucks experience. He uses his leadership style to hire highly qualified personnel and allow them to do their job (Schwartz 1). Schultz uses