Starbucks Going Global

 -          transformed a pedestrian commodity into an upscale consumer accessory
-          designer coffee at $3 a cup
-          market is getting saturated: number of stores in US
·self cannibalizing their own stores at a rate of 30%
-          choice: export its concept aggressively => global expansion
· risk: less money overseas
-          nearly debt free, fuels expansion with internal cash flow
-          design& open a store in 16 weeks; recouping initial investment in 3 years
-          no franchises
-          very low marketing cost
-          no nationwide competitor
Idea inspired by a Milan coffee bar
-          “ predatory real estate” strategy: paying more than market rate to keep competitors out of location
-          Starbucks Express: pre-pay online/phone- no success!
-          Challenge: attract the new generation
-          Risk: becoming less special place for its employees. Consequence to image and sales. Lawsuit : odd hours, low pay, not paying overtime
-          Business model : lots of low-wage workers; with expansion, high-service ends
-          Vienna : attracts young people; traditional cafes are old, S is hip
-          Japan : localize!
Cultural relativism: morality varies from culture to culture and therefore business practices are differentially defined as right or wrong by particular cultures
They used to rely on:
-          Retail expansion
-          Product innovation
-          Service innovation
Global awareness came from necessity: saturated US market. 
Uncontrollable elements:
1.      Domestic:
- Political/legal forces:
- Competitive structure
- Economic climate: US growth slowed
2.      International:
-           Political/legal forces: France- tricky employment laws
-          Competitive structure:   established markets, price challenge
-          Economic climate: world growth slowed (exception: China)
-          Level of technology: Japan vs. India
-         ...