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Starbucks
Starbucks
Introduction
It is one of the leading international food retailing chains with $4.2bn
revenue.
It operates with 16,635 stores in 50countries, including 11,068 in the
united states, while licenses and franchises operates more than 7,800 units
worldwide.
It decided to enter international markets using a three-pronged strategy
a. Joint ventures
b. Licensing
c. Wholly owned subsidiaries
Frappuccino
Green Tea
Asia
It was successful in attracting young crowd in all its Asian markets, as
the young people in these countries were eager to intimate the
American culture.
They offered curry puffs and meat buns in Asian markets as they want
prefer to eat something while having coffee.
Europe
Analysts felt strong coffee drinking culture in Europe posed
opportunities for Starbucks.
In 1998, Starbucks opened its first store in England and soon
expanded its presence to Switzerland, Germany and Greece.
They attracted young people over there where as old people stick to
the existing coffee houses.
Unlike traditional European coffee bars, Starbucks ambience and No
Smoking environment and self-service mode of operation made them
success in Europe.
Questions
1. What made Starbucks enter the international market?
2. What strategy is adopted by Starbucks for international expansion?
3. What are the various risks that a company faced while entering the
international market?
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