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Write a 9 page essay on Analyse the market entry strategies adopted by Starbucks, examining the obstacles faced by the management team which may have influenced the choice entry strategy used by the b
Write a 9 page essay on Analyse the market entry strategies adopted by Starbucks, examining the obstacles faced by the management team which may have influenced the choice entry strategy used by the business on entering 2 countries: The UK and China.
Starbucks wanted to be the most recognized and respected brand in the world. Their mission was to open new coffee shops round the world – either company-operated or licensed stores. After a stable business in North America, Starbucks started looking at international expansion through licensing and joint-venture partnerships (Darguste,
Su, Tu & Wei (2002). They were aware of the different cultural features in different markets and hence tried to alter their international expansion strategy in different regions (Starbucks, 2003). The MNC also needs to pay attention to local consumption habits apart from facing the resistance from anti-globalization organizations. Because of this, several competitors have to be faced as all look for early mover advantages. This report analyzes the entry strategies of Starbucks for the UK and China.
Information for evaluating the entry strategies in UK and China, details have been obtained from academic journals and the internet. These information have been evaluated against the entry mode theories.
Starbucks stores are usually located in high-traffic locations such as malls, grocery stores of busy street locations. They are well lit and they use lot of cherry wood and artwork for the interiors. The store size ranges from 200 to 4000 sq. ft. They also set up cafes and carts in supermarkets, hospitals, office buildings and shopping centres. They also enter into licensing agreements with companies such as Kraft Foods to offer coffee at the grocery stores in the US (Kotha & Glassman 2003). However, the business model would differ across regions. They usually find local business partners in foreign countries as it is easy to negotiate local regulations and they test with a few locations. They look for partners that share the same values, culture and goals about community development. They use experienced Starbucks managers initially and then they send the local
