Starbucks Coffee

Topics: Coffee, Vietnam, Starbucks Pages: 14 (4703 words) Published: October 22, 2011
Starbucks Corporation is an international coffee and coffeehouse chain based in Seattle, Washington Starbucks was founded in Pike Place Market in Seattle, Washington (March 30, 1971 (1971-03-30)) by Jerry Baldwin, Gordon Bowker and Zev Siegl

Starbucks has more than 17,000 stores in over the world ( following the information in 2010) including over 11,000 in the United States, over 1,000 in Canada, and over 700 in the United Kingdom Follow the the information of in 2010. The Brand Value of Starbucks is 3339 million U.S Dollar. Rank 97 in over the world Employees 137,000 (2010)

Currently Starbucks is present in more than 55 countries

But until 2011, Starbucks still have not come to VN. Our group think that Starbucks should come to VN through franchising method Why choose Viet Nam
1/ A suitable model of development:
In recent years, Vietnam has favorable conditions for business activity * GDP growth averaging over 8%
* The economic situation is stable
* The purchasing power is rated highly in the world
VietNam became officially the 150th member of WTO. It opens up a lot of opportunities for not only VN’s entrepreneurs but also other countries’ ones 2/ Policies from VN government
VN government encourage investments
VN Laws allowed foreign enterprise operate comfortably in VN which it didn’t occur in the past 3/ Others
Vietnam population is 82 million, among whom 2/3 are young people In Viet Nam, people spend 70% their income for consuming, especially in food ( Follow the data from The General Statistics Office) Why choose franchising

What is franchising? -> Starbucks chooses Franchising as its international entry strategy. A franchise is a business arrangement where the developer/owner (the franchiser) of a business concept grants others (the franchisees) the licensed right to own and operate a businesses based on the franchiser's business concept, using its trademark. For complete franchising model, the franchisor share and transfer of at least four types of "products" include: * Systems ( Strategies, model, management process, marketing support … ) * Trade or business secrets

* Right to operate under the Starbucks brand
* Products and services
Franchising in Viet Nam
With Vietnam’s entry into the WTO, it is expected that franchising activity in the country will increase markedly over the next few years. There are presently a handful of major franchises operating in the country, including Kentucky Fried Chicken, Lotteria, Jollibee, Pho 24, Gloria Jean’s Coffees, Buntamita and Cartridge World. In the past, Vietnamese law did not provide a clear basis for franchising arrangements, groundwork for franchising to develop in Vietnam. Reasons which Starbucks should choose franchisng

In fact, with the economy situation in VN, franchising brings a lot of advantages to both franchisor and franchisees Franchisor
* Franchising reduces the risk of investment into a new market for Starbucks. * Starbucks don’t need to have a huge capital. Capital is always one of the biggest problems of any company. But with franchising system, the franchisors don’t need to worry about it because franchisees have to use the capital of them to expand business, not franchiser. * Franchising help Starbucks access the new market quickly and make rapid expansion over broad area. In Vietnam market, especially coffee market, you have to find the way to develop and grow continuously to compete with others. No development means that going back. It’s lucky that franchising system can help you expand, develop your business quickly. * Promote the brand promotion strongly. With the expansion quickly of franchising system, it also helps Starbucks to advertise Starbucks’s image widely when hundreds of...
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