Investigating Starbucks Market Entry Strategies

Running head : INVESTIGATING STARBUCKS MARKET ENTRY STRATEGIES table of contents i . Executive Summary 3Introduction 4Research ruleology 4Data Gathering Method 5Related Literature and Study 5Common Factor Affecting food grocery cream - The Concepts 5Starbucks - Focus flake on Investigating the fellowship s marketplace EntryStrategies 7 partnership Pro 7The Company commercialize Entry Strategy 8Exporting 8Strategic Alliances 8Company Acquisitions 8Direct investing 9Franchising 9Key purposes 10Success and Failure of the Study 11Starbucks Global grocery Sh atomic number 18 12Recom custodydation 13Conclusion 14References 15Executive SummaryWith the unbroken feign of planetaryization in the economy , it similarly creates a really war-ridden environment for both new and open companies . One of the master(prenominal) reasons to this development was the availability of information , with technological advancement and way of lifern problem approach . That is wherefore for companies to be progressive and sustained its competitiveness in the grocery store , it does non scarce ask to look at the customers of necessity exclusively too how to really strengthen the entire movement of the conjunction , which starts from its sight , re line of descents and then technology . People are gloss over the some grave resource in the connection it has been proven to a greater extent dates that with this focus on throng instruction to run all the take byplay processes , it hush up the main(prenominal) cay to success . That is why in this count , focusing on the market admittance dodge of matchless of the close well up wondered guild that offers scarce the finest cocoa in the initiation , Starbucks , it will deliver some of the profound areas on how they capture sustained their operation and still sledding strong to the global market . The specific areas to be examine areCorporate ProMarket Entry Strategies Applied by the Company (Exporting , Alliances Acquisitions , Direct Investments and FranchisingKey Finding and some failures of the dodging appliedLastly , recommendation on what else can be improves in to sustain competitivenessAll of these key areas will be guardedly discussed in for the readers to really see how the federation draw with child(p) and what specifically the dodging that it applied and continuously applied to crystalize the respect , trust and stanchty of its customersIntroductionIt is very reciprocal these courses that are companies changing their strategies and the main reason for that is due to customers preferences are in addition changing . This has been the challenge in the 21st s instanter affair . With a dish up of influences that is coming around us and will continue to come in human lives , agate line will never be as competitive as it is now and the future to come . That is why for well-nigh rail line , it is really a battle on who can be more anticipative and pro-active in the game of cable . That is to a fault why some of the well kn feature companies in the world , really invest a lot of money in investigate and development these has never been the case before about 10 to 20 course of studys ago . Not only with the changing preferences of customers , but it is also about new market movers , these new market movers are the ones that keeping our chore competitive these days , most peculiarly the continuing evolvement of globalization where crushed players and definitely aggressive ones from developing and change surface underdeveloped countries beginning to substantially create some market mete out of their give birth . For most highly developed countries before , and some of assoil global companies , they have faced the greatest challenge now and more to come in the future . That is why for these drop dead companies , it is not a clock to barely relax with the withdraw in market lot they have , because slowly but surely small companies which consists of the studyity players are starting line to contact a serious fight that should not take for disposed(p) . That is why in this , with the main focus on Starbucks Company on how their foreign market compliance strategy is through with(p) , will give a good picture on how known companies globally continue to prepare itself for such challenges . With this required study this provides all the necessary details and facts just to provide a more quantitative and qualitative approach in the studyResearch MethodologyThe researcher utilizationed a qualitative method of research in conducting the study . The main function of a qualitative method was to describe and evaluate the current trend in the vexation and how the caller-out in reality performs it . By knowing how the beau monde and what the global industry is doing , it creates a real look at what was really happening in the global assembly line organisationData Gathering agent UsedIn gathering data and information , the researcher only employ the used of resource materials from the library , journals , and inter network sources which has helped a lot in coming up with a very relevant outcome in the studyRelated Literature and StudyCommon Factor Affecting Market Choice - The ConceptsIn to have a bankrupt idea on what really is done in the global prognosis when companies enters into business to another(prenominal) territories , this section provides some of the common details and concepts that is actually done . To start with , actually there are many factors that need to be considered by companies before they start to solve doing business in other territories , and these are (1 ) management educate word perspective and (2 ) Equity perspectiveIn terms of management consider , this is on how the alliance can effectively perform in other territories , is it needs to be through shared control first appearance flair which means that they can be in fusion with some local anesthetic fellowship in offering the religious service or selling the product Or the corporation itself needs to be the one manage it or called as just control musical mode . Actually the choice depends on how the source come with sees the potential in the territory that they will do business . This is actually one of the most alpha decisions that the confederacy should be careful of , because if they decide for example to let other party perform the business in the foreign dirt , they are also gambling on the type and standards of the fast(a) . simply for most of the cases for companies that really wants to recognize sure that the business will be perform properly , what they usually take in is full control . In this way they hire their own people and assign them on siteIn the second factor regarding justness perspective , there are also some important key areas that need to be done . Just want management mode this is exactly more than the management control perspective , because this is now is actually either selling the liberty to the local territory while the other is just trade only and there are no operations needed , the destination sites will only sell the product specifically the two main modes are (1 ) equity control mode , and (2 non-equity entry mode . Again in the equity entry mode , it is more of a joint ventures or directly acquisition of the foreign territory while the non-equity entry mode , is simply exporting of goods or franchising . In most natural elevation global companies , they always choose to have non-equity because it creates better business for them , resembling franchising which is the most common . Foreign territories do the business with the quality standards needed to be applied for the union and not just management they need to know the entire business process but purge though this is the most common , this is also the most challenging , because company needs to make sure that the company is performing the right standard or else it will affect the global status of the companyWithin this type of modes , that is also the reason why companies need to beat the best belong mode for the strategy that they need to apply . And these issues and other key areas that need to be studied carefully in to find the best fit areCommitment and level of involvement in internationalist businessTechnology issuesProduct type and product adaptationProduct weight and sizeAfter sales service considerationAnd , go over of market entryWith these key areas , it will give the company a better deal on what best fit mode of management and equity will be effectively be applied (Alexandrides , C .G Bowers , B 2005Starbucks - Focus Case on Investigating the Company s Market Entry StrategiesCompany ProStarbucks is one of the well known and respected company is serving only the finest java in the world . The company was originated in Seattle USA at Spike Place market where it beginning establish its first coffee bean business in 1971 . But , it was by the time when the company s main leader Howard Shultz joins the company in 1982 , that do the company progress . With his idea of respecting the business through the canonic understanding of people and always preserving quality , the company has expectant that is why now the company already has 2 ,600 coffee farms in Costa Rica and now it has already recorded 1 ,310 coffee shops in 2002 alone . In Japan and chinaware alone as two of the countries that has been made the company habitual , have 397 and 99 stores also in the same year This only shows that within this busy sites , Starbucks is always been a very draw outive business (The Company , n .dWith the growing throw in the people s lifestyle these days , the company has created a multiple strategy that mainly focuses on lifestyle . This was also been the strategy for most fast food chain and what they did was to follow the trend and developed some strategy that would attract disparate lifestyle and with different type of customers around the world . worry in China alone as one of the company s toughest market , since the country tea than any other drinks . They started to inebriate its customers through a very intensive market strategy like though commercials and advertisements on some of the most touristed TV sitcoms . This has helped the company to gain much market since most of its market is students and high class customers . Also a strategy through recommendations from known figures in both the industry and the ordinary sector have made a big impact as well and has helped the company to attract more and more customers (Emling , S 2004And as the company initially established better status in China in particular , it even penetrate the market by researching how they can really attract the market by doing more than just simple marketing and thee maybe as simple as giving abandon candies and CD s for their customers , still it generates better result and has continuous to do that until customers would really be eager to go the stores not only for the freebies but now because of the quality of coffee that they enjoyed at Starbucks (Bolt , K .M 005Strategic AlliancesOne of the best strategies that can be seen to Starbucks is the way the company effectively do partnership with other company . Starbucks as a well known company easily creates alliances with other company which for them is also a great opportunity working with the company . One of the biggest partnerships was with Bon appetite Group , and other big local companies in Switzerland and in the Middle East . Actually the strategy is plain and simple they form partnership with them , by installment a coffee shop within these companies . From there on as the customers will profit , partners will also conjointly plan for expansion or adding more branch to fly the coop (Starbucks Announces Entry to Continental europium 2000Company AcquisitionsIn terms of acquisitions , just like other company the strategy starts with finding the weakness of its competitors and at the same time for Starbucks , it is a never ending amelioration and development of new strategy in to keep their business in the highest level . From that point as they already have dominated the market and its competitor knows that if they continue it will just be a losing business , then that is the time even their competitors would itself sell its business to them . This is what happens in 1998 , when the company acquired Seattle deep brown Company . And since the company shared the same culture , the company was not that difficult to re-launch its business and serve the same customers that only have love to coffee . That is why in the global scene it was easily been adopted by Starbucks and Seattle Coffee most specially they know that it is only one owner that runs the companies (Starbucks in the UK n .dDirect InvestmentJust like other company as well , when it comes to investing they only do have it only for those that is very important for the company and for Starbucks , it is only coffee . One of its important investments was with regards to common coffee . As the start of healthy living starting to affect global business these days , they have invested a lot of money of introducing green coffee . This has helped the company a lot most specially in the health cognizant market like China . With the green tea innovation , it has been a big impact and has created a new balance and an added market value for the company .

In other quarrel , the strategy is simple , it is for the company to find latest trends in products and services that will help not only the company to grow but also attend to the needs of their loyal customers (Starbucks promotes green beans 2002FranchisingIn terms of franchising , the company has proven that quality is the most important and they will continue to do that for the sake of retaining its quality for its customers . But , the company manage to have some management assistance to selective countries that they know that quality will still be performed , like mostly in Japan , where the company knows that the company will still performed the best quality But over-all the company does not provide franchisingKey FindingsAs the success continues to happen for the company based from the strategies that was applied . As based from the reports in 2007 and 2008 which has provided these figures : cconsolidated net revenues of 2 .8 billion , a 17 percent which has an increase from Q1 of 2007 . An operating margin contracted 160 basis points to 12 .0 percent with earnings per share of 0 .28 , compared to 0 .26 per share in Q1 of 2007 This only shows that with the strategies that have been implemented these figures happened (See Figure 1 , 2 and 3Figure 1 : Stores Open at Fiscal course 2002-2007Figure 2 : Net Revenue Growth 2002-2007Figure 3 : operational Income 2002-2007Success and Failure of the Study One of the greatest success romance that the company has did was when the company has re-establish its charge in 1992 when the company re-establish its presence through strengthening its workforce and establish the company by recognizing the effort in each(prenominal) of the people working with the company . This has been the turning point of the company , with high respect to the men and people of the company with respect and trust as its main concept . It has created a well defined business and it nowadays improves the serviceStarbucks Global Market ShareAs the company just started with small coffeehouses in the United States , until afterward six fruitful years when the company grown by having 165 locations in 1992 . But that time Starbucks was still a small player in the coffee business as it was proven by the report that was presented by SCAA (Specialty Coffee Association of America ) that during the year 1992 , there were already 2 ,250 coffee shops in the US and Starbucks only has a thin 7 market share . But after the company have decided to go public that has created a huge increase in market share , like buying small chains of coffee shops , particularly , Seattle s scoop out Coffee and Torrefazione Italia , and the aggressiveness of the company to build new locations each year . Until by 2005 when the company grown rapidly and that year it already has 7 ,300 in the US and a shops globallyFrom that rattling(a) growth , it follows that the company also has increase its market share dramatically . That is why from its 7 .7 billion sales in 2005 , the company has a whopping market share of 70 or almost one third of world of the global share of 52 in terms of location , where people easily can see Starbucks coffee shops in most busy areas (Tracy ,2006Major Countries and the number of coffee shops in each of the thee main Geographical Region where Starbucks is in operation are the followingAsia-Pacific geographic ZoneJapan 397Taiwan 99China 88South Korea 53Philippines 49New Zealand 34Singapore 32Malaysia 26Indonesia 5Europe /Middle Easy / African RegionUnited Arab Emirates 23Saudi Arabia 22Kuwait 16Switzerland 12Lebanon 11Israel 6Austria 5Spain 5Germany 4Qatar 3Bahrain 2Greece 2Oman 2Latin AmericaHawaii 30Mexico 1Puerto Rico 1These are the major countries around the world that has licensed Starbucks International Stores to operate (Starbucks wad Competing in a Global Market 2003Recommendation It is very taken for granted(predicate) that the only recommendation is for the company to continue to perform its business by respecting the men and women of the company which they have developed and meliorate through the years Another one is their close expectation and study in the market , the company must set ahead improve it in to continue to promote competitivenessConclusionAs a end , it shown in this study that Starbucks has been a very successful company that mainly focus on how they treat their people This also shows that with their close attention to its customers and the continuing respect to the need of its customers , it has been the main key to its success . This is also a big lesson not only to new and aggressive companies but also alive companies that there are no way a company will not grow if only they look and respect the people who works hard for the company and secondly is on how the company should focus mainly on investments that really matters a lot for the business is the most important things that need to be prioritizedReferencesAlexandrides , C .G Bowers , B (2005 . Market Entry Strategies - Choosing A ForeignEntry Market Mode . [online] visible(prenominal) from [accedd 15 February 2008]Archive for the China market entry strategy category (2007 . UNICON - China MarketInfiormation . [online] available from[accessed 16 February 2008]Bolt , K .M (2005 . Starbucks Adjust its Formula in China . [online] available from saettlepi .comwebsite [accessed 16 February 2008]Emling , S (2004 . Fast-food nation Exporting a lifestyle : Americana becomes a tougher sell[online] available from International Herald Tribune website [accessed 16 February 2008]Market Entry Strategies Case Studies Achieving Success in China Starbucks Strategies andChallenges (2006 . IBS-Case Development Centre . [online] available from [accessed 15 February 2008]Starbucks friendship (n .d . Student Resources . [online] available fromHYPERLINK http / vane .mhhe .com /business /management /thompson /11e /case /starbucks-1 .h tml http /www .mhhe .com /business /management /thompson /11e /case /starbucks-1 .ht ml [accessed date 16 February 2008]Starbucks Corporation : Competing in a Global Market (2003 . University of Washington phone line School [online] available from [accessed 18 February 2008]Starbucks in the UK (n .d . Starbucks UK . [online] available from Starbucks Coffee Company -United Kingdom website [accessed 15 February 2008]Starbucks Investor carnal knowledge (n .d . The Company Investor Relation [online] available fromStarbucks Company Investor Relation website[accessed 15February 2008]Starbucks Announces Entry to Continental Europe (2000 . AllBusiness [online] available from[accessed 16 February 2008]Starbucks Marketing Management (2008 . Beaucastel .org [online] available from [accessed 16 February 2008]Starbucks promotes green beans (2002 . Foreign Direct Investment [online] available from[accessed 15 February 2008]The Company (n .d ) Starbucks Corporate Webpage . [online] available from [accessed 16 February 2008]Tracy ,(2006 . Companies with Tremendous Market Share Potential Street Authority [online]available from [accessed 18 February 2008]PAGE 1PAGE 1 Investigating Starbucks market PAGEEnterprise Data Storage ...If you want to get a full essay, order it on our website: Ordercustompaper.com

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