Starbucks global expansion strategy essay

It should be pointed out that the company steadily implemented the strategy of the market expansion in the course of its development.

Overall, the entry strategy to Starbucks in China is to negotiate the acceptance of its brand by winning the local community and coming in strong by distinguishing its brand.

These restrictions limit the flexibility of Starbucks in operating in China. This means that the company needs to overcome national borders and operate worldwide to remain competitive.

However, it is necessary to point out that such a strategy may be accompanied by certain risks. It should be pointed out that the main feature of its strategy is high aggressiveness of the company and its main goal is the expansion and entering new markets.

Another factor is barriers to entry relative to the expected returns Clark, In such a way, the quality constitutes an essential part of the organizational culture of the company and one of its major characteristics customers like probably the most.

Starbucks Global Expansion Strategy essay

With too much at stake, Starbucks needs to master or perfect its expansion strategy in China to achieve its goal of making the market possibly a new base for its global operations.

Thus, taking into account all above mentioned, it is possible to conclude that Starbucks is a leader of the national market but, in recent years, the company has started to implement new strategy of the international market expansion targeting at international, global market.

At the beginning, Starbucks basically focused on the regional level but, as the company continued growing the necessity to expand its presence on the national level became obvious. One factor is the size of the potential market Clark, It is worthy of mention that, in the current situation, the company has chosen probably the most effective strategy that provided Starbucks with ample opportunities to continue growing and this strategy is international markets expansion.

The global economic crisis and the downsizing of the company in the United States heightened the importance of its global expansion, especially in China. The quality refers not only to company-customer relationships but it also refers to the functioning of the company at large, including relationships between employees as well as between the administration of the company and employees.

At the same time, the wide spread of the company and the popularity of its brand are determinant for the commercial success of the company. In China, Starbucks succeeded in gaining government approval to establish a branch in the Forbidden City and in the great wall.

Now, Starbucks needs to heighten its global expansion strategy amidst the impact of the downsizing in the United States on its global expansion especially in China. To put it more precisely, Starbucks increases the quality of its service through the additional training of the personnel during which employee learn how they should behave while communicating with customers and, in general, quality is the backbone of the current success and the strategic point in the development of the company.

Another strategy is to adapt to the local culture to an extent that does not significantly alter the brand that Starbucks maintains globally.

Starbucks' Global Strategy

Now, Starbucks is building China not only as a market but also as a source of coffee beans. The strategic choice of Starbucks has always been balancing the integrity of its global brand and accommodating local contexts. For instance, the company may face serious problems in the result of its aggressive policy of expansion, such as the opposition of the local rivals as well as local population that can reject the new company, its product and services.

In China, expansion into the country also necessitated consideration of the means to introduce a high-end or premium American brand into this culturally solid country that is just starting to learn about other cultures.

Moreover, it is the only logical strategy because fiscal barriers between countries gradually disappear that meant that entering barriers in local markets of different countries disappear too, Starbucks global expansion strategy essay the penetration of the company in these markets easier and faster.

In China, Starbucks needed to be creative. Consequently, the growing customer satisfaction leads to the growing popularity of the brand of the company, while the latter results in the improvement of the market position of the Starbucks through the increase of the market value of the company.

One of the major goals of the company is the development of the positive perception of the company by its customers. It is not a secret that in modern world, the brand of a company constitutes a significant part of its market value.

Retrieved August 4,from http: At the same time, the company still remains highly popular among its American customers. In the result of the high quality of services and products customers can buy in the Starbucks, they naturally acquire a positive experience and, therefore, they grow more and more confident in the company, its products and services.

Many executives from the United States moved to China to manage its expansion. You can order a custom essay on Starbucks now! In other words, the company needs to develop the positive customer experience in new markets in order to minimize apprehensions of customers in relation to the new player in the market.

Nowadays the company continues its traditional strategy of the market expansion but, unlike in the past, it is not focused on the national market solely. It should be said that the strategy the company uses at the moment seems to be quite effective.

As an aggressive player, Starbucks seeks not only to enter new markets but also to dominate these markets.The Global Expansion Strategy of Starbucks Words Feb 2nd, 3 Pages This has created a situation where many companies are forced to scale back domestic expansion plans because of lower consumer spending.

Global Growth Strategy of Starbucks Essay Through its strong global brand representing the American culture, Starbucks appeared in many countries around the world through the company’s aggressive expansion strategy.

Starbucks' Global Strategy Essays: OverStarbucks' Global Strategy Essays, Starbucks' Global Strategy Term Papers, Starbucks' Global Strategy Research Paper, Book Reports. ESSAYS, term and research papers available for UNLIMITED access Expansion Of Starbucks The Store Expansion Strategy In and Starbucks developed a.

Starbucks initially used licensing agreement for its global strategy.

Global Growth Strategy of Starbucks Essay

Because Starbucks wanted to control the business strategy in the Japanese market, it changed the strategy by establishing joint venture with a local retailer, Sazaby, Inc. Starbucks Coffee International (SCI) was created in to coordinate the international expansion, which started in Japan, Hawaii, Singapore, Philippines, Taiwan and Korea.

Starbucks expansion strategy was well thought: the offensive was to take place in the Pacific Rim in order to gain momentum and strength, far away from Europe and Latin. Starbucks Global Expansion Strategy essay Starbucks is one of the most successful companies of the US, which is well-known nationwide.

Throughout its history, the company has reached outstanding results, becoming one of the leaders in the national market.

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Starbucks global expansion strategy essay
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