Bannit Nouhaila (G2)

The case of Starbucks

What are the key growth drivers for Starbucks?

Starbucks is extending his request into domestic and transnational bones . The company
opened more than 2000 stores a time worldwide. It is known for its innovative products and
menu. The company introduced new drinks, which came a huge megahit. The company has
also concentrated on offering healthier options similar as low- fat and sugar-free drinks. Plus,
Starbucks is a well- established brand with a strong character for quality, thickness, and
invention. The company has managed to produce a unique brand image and client
experience, which has helped it separate itself from its challengers.
Why has Starbucks been very successful in some countries and failed miserably in others?
Starbucks has been criticized for not considerating local cultures and the needs of
customers. Even if it has been very successful in some countries, such as the US, Canada, and
the UK, failed miserably in others, such as Australia and Israel. In Australia, Starbucks faced
intense competition from established local coffee chains. The company failed to differentiate
itself from these local competitors, which led to its failure. And, in Israel Starbucks was
criticized for its high pricing strategy. The company failed to adjust its pricing strategy to
local market conditions, which led to its failure.
What would you suggest in order to improve their international operations?
As suggestions, I think that Starbucks has to differentiate its strategies according to the
country. With this, the company can face the competition and meet the needs and
preferences of local customers. Adding to that, Starbucks should take into considerations the
local market conditions and determine a pricing strategy for each country.