Bus620 Week 5

Marketing in a Global Economy Starbucks has built a reputation of being the best coffee has to offer. From starting out as a small market coffee store to becoming a top of the market coffee distributor, Starbucks has built a reputation that may be hard to take down. Entering into the Italian market could be a very risky move since it is the country that is considered by some to be the coffee originator. Starbucks entering the Italian market is considered to be a reputational risk and one that they may be able to afford but will bring some challenges. This paper will discuss some of those challenges along with determining if there is a strategic advantage to entering the Italian market as well as explaining how it’s competitors marketing strategies influence Starbuck’s entry into the Italian market. This paper will also discuss whether Starbucks should consider entering Italy at all. Italy has nearly 140,000 bars and cafés across the country in which Italians drink coffee the way New Yorkers once took cigarette breaks (Faris, 2012). The need for a company like Starbucks is there but the rich history of coffee in Italy is the biggest obstacle stopping Starbucks from making that move. Starbucks prides itself on using expensive Arabica coffee beans with complex flavors. In Italy, because of cost and market demand, many roasters mix in significant quantities of bitter Robusta beans (Faris, 2012). Starbucks would have the challenge of satisfying the coffee culture of Italy why adapting its taste to the customers. The people may not approve the current taste used by Starbucks as they consider it to limit the taste of the coffee beans. This would not be a big challenge to overcome as Starbucks could easily handle learning the culture and coffee styles of the people prior to making the move. Starbucks has the reputation of being a hang out for people to go and do homework or converse amongst each other. This is something that is needed in Italy, as most of the coffee

References: Faris, S. (2012). Grounds zero: A Starbucks-free Italy. Bloomberg Businessweek. Retrieved from ProQuest. Patterson, P. G., Scott, J., & Uncles, M. D. (2010). How the local competition defeated a global brand: The case of Starbucks. Australasian Marketing Journal, 18(1), 41-47. Retrieved from http://search.proquest.com/docview/734593400?accountid=32521