Schmidt 5:30 – 8:00
March 16, 2015
1. Licensing is probably more popular in other countries because it is probably better suited for Starbucks. For a company founded in the United States, Starbuck’s niches lies in the country in which it was founded. They are a successful company because they know how to market to Americans. Licensing the company to is a good move because other countries are different than the United States and what might work to gain high sales in the U.S. might not work in the other countries.
Licensing would allow the owners in other companies market to the people of their culture. And it’s not only marketing, businesses are sometimes ran differently in other countries as well Also having too many international stores that are not licensed might just be an overload for Starbucks to oversee because of the distance of those stores from the main headquarters in the United States.
2. Everyone loves a deal, and many people find Starbucks to be quite pricey, so especially in an economic downturn, I think it was a good idea for Starbucks to adapt to the economic downfall. With fast food chains offering coffee as well as dollar menus, it only makes sense for Starbucks to compete for at least a small share in the value price food and beverage market.
Unlike most fast food chains though, Starbucks is looked upon to be a more premium brand for food and beverages and they have had great success doing it. So the main objective would be trying to lower prices of their products while still maintaining that premium status. With already having great success, it makes zero sense to change their whole business outlook and become a value store and compete with cheaper food chains. Starbucks did it right by just offering the more affordable “Instant Packs” to consumers for them to make to make on their own because they still keep that “Starbucks” premium trademark but yet sell it at a...
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