Starbucks
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Case 1-1 Starbucks – Going Global Fast
Sept. 23, 2011
Question#1 - Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets.
The controllable elements of marketing decisions for Starbucks include product, price, promotions, distribution and research. The uncontrollable elements of marketing decisions facing Starbucks include competition, politics, laws, consumer behaviors and level of technology. (Philip Cateora, International Marketing, 2010)
Since doing business in other countries besides the U.S., Starbuck does not solely rely on the U.S. for continuing increases in profits. “Starbucks record third quarter results reflect both the underlying strength and continuing momentum we have been experiencing across all of our business segments and around the world,” said Howard Schultz, Founder, Chairman, President and CEO. “These results demonstrate the power, and the extraordinary global potential, of our unique new business model. Starbucks has never been healthier, more connected to our consumers and partners, or better positioned to go after the tremendous business opportunities that lie ahead,” Schultz added. (Fontevecchia, 2011) Since coffee is a daily part of our lives, grabbing a morning cup of joe or an afternoon pick-me-up, Starbuck provides their customers with the convenience of placing stores in central locations. Even in a recession, customers may complain about the cost of buying a cup of coffee for $2.50 or more, Starbucks added sandwiches and music to increase the selections offered to their customers.
But there are also issues that Starbucks faces as an international marking company. For one thing, it makes less money on each overseas store because most of them are operated with local partners. While that makes it easier to start up on foreign turf, it reduces the company’s share of the profits to only 20 percent to 50 percent. (Philip Cateora, International Marketing, 2010)....
Sept. 23, 2011
Question#1 - Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets.
The controllable elements of marketing decisions for Starbucks include product, price, promotions, distribution and research. The uncontrollable elements of marketing decisions facing Starbucks include competition, politics, laws, consumer behaviors and level of technology. (Philip Cateora, International Marketing, 2010)
Since doing business in other countries besides the U.S., Starbuck does not solely rely on the U.S. for continuing increases in profits. “Starbucks record third quarter results reflect both the underlying strength and continuing momentum we have been experiencing across all of our business segments and around the world,” said Howard Schultz, Founder, Chairman, President and CEO. “These results demonstrate the power, and the extraordinary global potential, of our unique new business model. Starbucks has never been healthier, more connected to our consumers and partners, or better positioned to go after the tremendous business opportunities that lie ahead,” Schultz added. (Fontevecchia, 2011) Since coffee is a daily part of our lives, grabbing a morning cup of joe or an afternoon pick-me-up, Starbuck provides their customers with the convenience of placing stores in central locations. Even in a recession, customers may complain about the cost of buying a cup of coffee for $2.50 or more, Starbucks added sandwiches and music to increase the selections offered to their customers.
But there are also issues that Starbucks faces as an international marking company. For one thing, it makes less money on each overseas store because most of them are operated with local partners. While that makes it easier to start up on foreign turf, it reduces the company’s share of the profits to only 20 percent to 50 percent. (Philip Cateora, International Marketing, 2010)....