When starting up a new store, in this case Starbucks, there are different factors that have to be looked at. The country of the place is where you have to start off. We have decided that the best 3 countries are Finland, Monaco and Austria. We analysed factors such as Geographic’s of these countries and also Demographics, Economic, Socio cultural and Political/Legal sides of it.
The first country that we chose to analyse is Monaco. It is a sovereign city state, located on the French Riviera in Western Europe, bordered by France on three sides, with one side bordering the Mediterranean Sea. It is one of the smallest countries in the world, as it as a surface of only 2.05 km2. Monaco’s population estimate in 2011 was 36,371 according to Wikipedia. Nevertheless, Monaco is one of the wealthiest countries in the world. It has a GDP per capita of $153,177, which is the first place in the List of countries by GDP (nominal) per capita.
Monaco has a small population, but it has a very high income, meaning that the price elasticity in the country is very inelastic. When the price elasticity of demand for a good is perfectly inelastic changes in the price do not affect the quantity demanded for the good; raising prices will cause total revenue to increase. With our Starbucks we will also have a big advantage as the age group of 15-64 years, which is our target group, 60.8% is of the total population. (http://www.indexmundi.com/monaco/demographics_profile.html). It also has over 48,000 workers that come from France and Italy each day for different purposes.