Starbucks- Going Global Fast
Case Starbucks – Going Global Fast
1) Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets.
As internationally operating company, Starbucks is familiar with entering new markets. As seen in the case, a foreign market entry always involves as well uncontrollable as controllable elements.
The controllable aspects are: • promotion • price • product • channels of distribution • research
In Vienna Starbucks, usually known for low marketing costs, had a gala opening for the first store all over Austria. A big marketing campaign is not what Starbucks stands for. It got popular mainly by word-of-mouth recommendations, but in Austria it was decided to adapt the promotion and introduce Starbucks with a gala, because over there Starbucks had to defend a very modern reputation. In North- America already regarded as ordinary, Starbucks still attracts a lot of people in Europe, especially of the younger generation.
Adapting the price level is a possible step to simplify the expansion into another country. In general the coffee in Italy is much cheaper than Starbucks´ coffee. An espresso in northern Italy is offered for approximately 67 cents; in the south just 55 cents. By that reason Starbucks would have to lower the prices, entering the Italian market. Italian coffee experts also consider Starbucks coffee of a low quality. Therefore an adaption of the taste needs to be made by changing the coffee making process or using different beans.
The channels of distribution are controllable, as well as the location of new a store, considering infrastructure.
As already mentioned before, entering a foreign market is always connected with uncontrollable aspects.
In Japan Starbucks encountered two uncontrollable elements of the international marketing task. On the one hand the economic and on the other hand the competitive forces displayed an obstacle
1) Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets.
As internationally operating company, Starbucks is familiar with entering new markets. As seen in the case, a foreign market entry always involves as well uncontrollable as controllable elements.
The controllable aspects are: • promotion • price • product • channels of distribution • research
In Vienna Starbucks, usually known for low marketing costs, had a gala opening for the first store all over Austria. A big marketing campaign is not what Starbucks stands for. It got popular mainly by word-of-mouth recommendations, but in Austria it was decided to adapt the promotion and introduce Starbucks with a gala, because over there Starbucks had to defend a very modern reputation. In North- America already regarded as ordinary, Starbucks still attracts a lot of people in Europe, especially of the younger generation.
Adapting the price level is a possible step to simplify the expansion into another country. In general the coffee in Italy is much cheaper than Starbucks´ coffee. An espresso in northern Italy is offered for approximately 67 cents; in the south just 55 cents. By that reason Starbucks would have to lower the prices, entering the Italian market. Italian coffee experts also consider Starbucks coffee of a low quality. Therefore an adaption of the taste needs to be made by changing the coffee making process or using different beans.
The channels of distribution are controllable, as well as the location of new a store, considering infrastructure.
As already mentioned before, entering a foreign market is always connected with uncontrollable aspects.
In Japan Starbucks encountered two uncontrollable elements of the international marketing task. On the one hand the economic and on the other hand the competitive forces displayed an obstacle