Please help and answer this i would really appretiate it article on check : http
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Question
Please help and answer this i would really appretiate it
article on check :
http://www.chegg.com/homework-help/Marketing-2016-18th-edition-chapter-9-problem-1CQD-solution-9781285858340
1. Describe Starbucks' global strategy. Is it engaging in more of a globalization or customization approach?
2. What appear to be some of the most significant barriers Starbucks is facing when expanding into foreign countries?
3. What are some of the most significant obstacles to expansion in Italy, and how can Starbucks overcome them?
Explanation / Answer
1. Starbucks has its operations running in over 19000 stores in 62 countries. with US coffee market getting saturated over time Starbucks adopted the strategy of expanding into international coffee markets & leveraging the potential growth of those markets. Starbucks has adopted global strategies to expand into various international markets where it had to maintain its quality with little bit customization to have a smooth transition into the market, but some markets needed a different strategy altogether so as to cater to the local needs as well. Starbucks is now moving towards a customization strategy approach where they understand the local needs and create the ambience and service delivery in that same manner so as to create loyal customers. Starbucks may not be able to cater to all the markets with simple globalisation strategy without any customization since it is the experience of having a coffee is equally important as the quality and hence catering to local needs will allow Starbucks expand profitably.
2. Starbucks faced various social, demographic problems while expanding into foreign coffee markets which are listed below,
3. Starbucks originated from an idea taken from Italian culture of enjoying coffee, this makes it clear that Italy is a country where coffee is considered as an experience than just another beverage. hence Starbucks can face significant obstacles which are,
Starbucks can overcome such obstacles to enter into Italian market by following ways,