The analysis of case 1-1
Starbucks Going Global Fast
The development history
• • • • •
Origin : In 1971 , Seattle Name : Starbo → Starbucks Logo : mermaid（legends of the sea） The soul man : Schultz , In 1987 Expanding : In 1992 , New York Nasdaq
Critique Starbucks’overall corporate strategy
Advantages • • Increase market share and profit Access to the benefits of economies of scale Reduce the cost of delivery and management • Increase its visibility rapidly
uncomfortable/can't afford/sent
pretentious
atmosphere;cater to value systerm
of younger ;
Culture
oversea:
Rivals offer similar fare; French sweeter taste; Italy Coffee+food /cheaper/ Italian
Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets
Controllable factors
•Product •Price •promotion •Place •employee •own economic stituation
cultural infrastructure; base on different customer come up with multilevel products and strategy.
purists
Political——France's arcane regulations and generous labor benefits adapt to local political actively;build win-win relationship
How might Starbucks improve profitability in Japan？
1.Their U.S. coffee is not suit Japanese’s tatse. So offer more kind of coffee that cater the local tastes. 2.In the past 2014,Starbucks had an acquisation of shares from its partner in Japan. Then they will have a chance to enter more convenience stores to sell their coffee. 3.Seven-Eleven has pushed out some automatic coffee machines to improve its profit rate. Starbucks can also set some automatic coffee machines in communities.And then Starbucks can get more profit.
4.In 2014,the consumption tax in Japan has rised to 8 per cent. People who buy Starbucks has to pay more than before. Starbucks should have some marketing strategies to reply this change. 5.Make use of Janpanese culture, such as sakura and cartoon. Push out some side-line range of products to attract fans.
solutions.
• Internal factors
risks oversea:global expansion solution
fully ways of expansion
accurate development positioning and competitive strategy
The store quickly
Uncontrollable factors
•Market diversification •Market system •Complexity of the market
What are the major sources of risk facing the company?Discuss potential
native:becoming saturated "Predatory real estate"strategy
Staff's quantity、quality and benefits
improve the staff's quality,such as staff training;various treatment that matching requirement;
• External factors
risks
Economy——downturn——cut back budget native:younger coffee drinkers feel
solution
build unique brand value and position.Price strategy Create the unique consumption