Starbucks Abroad Essay by Neatwriter

Starbucks Abroad
A look at reasons why Starbucks' performance in foreign markets is mediocre.
# 61361 | 924 words | 5 sources | MLA | 2005 | US
Published on Oct 02, 2005 in Business (Companies) , Business (International) , Business (Management)

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One of the largest sources of competitive advantage for a global corporation is the ability to optimize operations on a world-wide scale by minimizing costs and maximizing revenues. This is accomplished by leveraging technology, manufacturing efficiencies, brand names, and/or capital across countries. This paper explains that the major thrust of Starbucks Corporation's global strategy has been to build a global brand to target customers in all major markets throughout the world. However, the writer points out that even with instant name recognition, the company has faced enormous challenges in applying its domestic business model to work in many foreign markets.

From the Paper:

"Starbucks was founded in 1971 as a gourmet coffee bean roaster and distributor and began to dominate the North American market over the following two decades. To continue its rapid growth and to combat the threat of future market saturation in its own domestic market, Starbucks turned its eye to international expansion in 1996 (Starbucks outlines international growth strategy; focus on retail expansion and profitability, 2004). By the end of that year, Starbucks had opened 127 international stores. At the end of 2000 the company had reached 792 stores in sixteen countries outside the United States and has just ended fiscal year 2004 with 2,437 stores in 33 countries outside of the United States."

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