Starbucks International Market

According to some report, Starbucks has a way for entering foreign market. Most of the time, the company searches of international partners and then test the country by opening few stores in fashionable places. Starbucks employ experienced managers to lead its new operations abroad. Then local baristas are sent to the headquarters for training. After that, the company starts to open numerous stores. The company also makes it a point to adapt its food to local tastes. The company’s guiding principle in entering foreign markets is first to find suitable partners. The company relies heavily on its local partners for overseas operations. The company consider it very important to look for local partners that will deal with local issues. The company chooses partners that are willing to share the Starbucks philosophy, values, culture and goals. Since the company relies heavily on its overseas partners, it maintains a rigorous criteria for choosing partners. At the very least, prospective local clients need to possess similar philosophy in terms of shared values, corporate citizenship, and commitment to be in the business. The partner also needs to have multi-unit restaurant experience and with financial resources to expand the Starbucks concept rapidly to prevent imitators. Prospective partners must also posses a strong real-estate experience with knowledge about how to pick prime real estate locations and a knowledge of the retail market.
            The company has very intensive rules when it comes to partnering. In an international joint venture, it is the partner that chooses store sites. These are submitted for approval to Starbucks, but the partner does all the preparatory and selection work. According to a report, the company looks for extremely visible   sites in well-trafficked areas and focus on three major factors: demographics, branding potential and financials. Then the locations are categorized using an A to D scale. A sites are prioritized while the...