As the essay declares the Starbucks Coffee channels of distribution include department store and work place environment, airports and hotel chains, coffee shops and coffee bars, etc. According to the company’s statistical data, in 2002, there were “a total of 4,247 coffee shops in the United States and Canada”. In order to grow direct sales, Starbucks has created Online Caffe to reach the global market.
This paper stresses that new market entry is aimed to increase the level of sales, and maintain the firm ground for word wide market penetration. Liberalization, foreign ownership and mergers will have a major impact upon the future of the coffee industry, but many regulatory and ownership barriers remain in force worldwide. Organizational 'type' has been dramatically influenced by the rise of globalization. Coffee trade is seeking to maximize its 'global reach', in the belief that those that offer a global service will be in the strongest competitive position. For these very reasons the Asian market has been chosen as the potential one. The Asian market shows the highest rate of economic growth around the world. As for the coffee consumption, its growth rates are approximately 20-30% a year, and that is why it is very attractive for Starbucks Coffee company promising potential growth for coffee industry, in comparison with the European market forecast. Singapore was chosen by Starbucks as the main business canter in Asia.