Starbucks Case Study

Topics: Subsidiary, Parent company, Corporation Pages: 2 (583 words) Published: April 26, 2012
Starbucks Write-Up
1) Starbucks benefit from expanding internationally because they are maximizing market penetration and achieving profitability. While focusing on profitable growth Starbucks introduces its products in retail stores located in international countries. They selectively introduce specific products to specific countries. Starbucks had to expand because of the saturated home market here in the U.S. which leads to self cannibalization. They reached the brand maturity stage in the U.S. and needed to continue their growth. Starbucks has increased revenue. Starbucks benefited from international expansion by finding local business partners and using experienced managers. Starbucks currently has 8,400 stores, 2,000 of those stores are located in 31 countries other than the United States. 2) Starbucks has been so successful internationally because it formed joint ventures with local retailers in each country. Starbucks also focused its operations to replicate the Starbucks experience in North America. So Starbucks focused on quality employee/customer interactions. For this to happen, Starbucks made sure each employee attended training. With this, Starbucks offers their employees with compensation policies that gives them stock option grants and medical benefits, this allows employees to respect their work environment. Starbucks is also successful because of its wide array of products, coffee, tea, expresso drinks, etc. Starbucks also focuses highly on location, placing businesses in high traffic areas to utilize as much business as possible. The difference between global standardization and local customization is that global standardization is a marketing approach that is used globally. It works across different cultures and countries to promote a product. Starbucks uses global standardization in marketing their product. Starbucks uses this strategy to maximize profit. They utilize this strategy to create uniformity in their products. This allows...
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