International Strategic Marketing
Conducted byChe Thanh Quang
Date2 – Jan - 2013
2. rESEARCH AND AND ARCKNOWLEDGE FOR sTARBUCKS IN THE iNTERATIONAL MARKETS Internal factors in Foreign market selection
* Capital requirements
* Time and research
external factors in foreign market selection
* Market potential
* Political environment
* Legal environment
* Economic and culture environment
Everyday, people in the world go to Starbucks’s coffee shop to take their cup of coffee. Despite the overpriced a cup of coffee, people still enjoy their coffee every day across the world. Simply, Starbucks offered the unique space and taste for consumers with a professional assists from their helpful employees in any problem or trouble in a friendly way. People believe in Starbucks for what it represents symbol that comes with the quality of each product they serve. Although, there are numerous competitors which they are similar to Starbucks’s business, its strategy and structure bring to it the success and eventually it becomes the good model to follow, due to its national and global success. By searching and analysis of the coffee retail industry and Starbuck’s situation, the researcher determined how the company can be successful as multinational corporation in the world even though the competitive economic times. And they examined where Starbucks takes position in coffee industry with its strategies. Especially, the thing which is important is how they choose and give decision to get access a international market and which factor they should concentrate to keep on the way. The last thing that is discussed is the strategic recommendations for Starbucks, and how to go about implementing those impacts to apply in real economic market.
2. Research and acknowledge for Starbucks in the international markets Since the moment the organisation discuss to keep going to trade in the local market or whether get moving on to foreign markets on geographical level, there are several impacts which will affect directly to their decisions. These decisions can be divided into two sides, namely internal factors and external factors. If the goals of the company calls for an increase of 10% in sales or profits, it is from this an organisation need to seek out new markets in which to rise the sales (often occurring if the market is saturated or the company currently holds the market leader position), as outlined by Aaker (2001). Organisation are not currently achieve the goal as expected, they should consider the idea which will prompt into considering another market which may provide more potential benefits for company. Both the long term and short term of a decision organisation are discussing, should have to consider the situation of the company and result after the decision is applied.
Internal factors in Foreign market selection
In this part, the consideration is included not only the management but also their employee. “An organisations’ response to global market opportunities depends greatly on management’s assumptions or beliefs, both conscious and unconscious, about the nature of the world” (Keegan & Schlegelmilch, 2001, p. 17). They determined how affect of personnel will go on to complete the international mission These include:
The management of organisation or owner style will influence in choosing the new foreign market for international access. The more knowledge and particular skills the managers get, the less risk the organisation may take in term of getting access to a new market of a certain countries. Their experience may also be required and his knowledge would be...