Case Study One: Globalization of Starbucks
1. The original idea came out when the company’s director of marketing, Howard Schultz came back from a trip to Italy enchanted with the Italian coffee house experience. A lesson can be drawn that we should always pay attention to what is happening around us. If we take others’ essences and discard the dregs, our own business will be successful sooner or later.
2. Starbucks start expanding internationally because its Starbucks format led to spectacular success in the United States, and it became one of the best-known brands in the country in a decade. In 1997, with 700 stores across the United States, Starbucks began exploring foreign opportunities. I think Starbucks’s strategy is a very smart action. Starbucks has created the successful “Starbucks experience”, so it will indeed become more successful after international expansion. This will not only attract more investors, but also bring Starbucks and its shareholders lots of benefit.
3. I think joint venture would reduce the cost and win reputation when Starbucks enter a foreign market. As a big local retailer, Sazaby Inc. already had constant customer group, it naturally led its customers to try the new Starbuck coffee. It saved advertising and promotion expenses. In addition, by jointing venture, Starbucks would naturally win good reputation in the beginning, so more customers would trust it and try to taste it.
4. Yes, I think Starbucks is definitely a force for globalization. It is a successful example during globalization. It promotes the economic communication among different countries. It also enables different companies to learn from each other. The international expansion strategy not only brings its own company and its cooperative companies lots of benefit, but also makes a huge impact on many corporations worldwide. It encourages more companies to expand