Globalization Strategy And Growth Strategy: Starbucks

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Many people would assume that Starbucks has reached, or is fairly close to its saturation point. In just about any city, suburb, transportation hub, or college campus, there’s a Starbucks location to meet coffee drinkers needs. A likely investment for Starbucks would be to continue its expansion worldwide. Not only should Starbucks concentrate on expanding its footprint, but also continue to alter its stores. Rather than opening more dine-in restaurants, Starbucks should concentrate heavily on drive-thrus in urban and suburban areas. In addition, Starbucks is opening up express stores which are essentially walk-thrus in New York, Boston, and Seattle. This strategy is aimed at increasing the company’s store penetration into the coffee market.
With the coffee markets, continuous growth, Starbucks must position itself as the most preferred coffee company. Starbucks has been looking at several Roasteries, offering different types of coffee experiences such as: pour-over, siphon, clover, specifically roasted Reserve coffees on-site from a scoop bar, and interactive experience with bars and baristas. Targeting the upper-middle income group is essential to Starbucks success while still offering the premium Roastery experience but at a lower cost. Additionally, lunch hours, have been the fastest growing segment for a number of years. Improved food
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market should focus on getting additional penetration into untapped rural markets. Another growth sector is its packaged coffee packets and iced beverage products. Starbucks should build better relationships with big box retailers to get premium shelf space and increase the efficiency of this distribution channel. From their 10-K’s, we can see that Starbucks invest very little in advertising and marketing initiatives. It would be recommended that Starbucks makes significant investments in advertising and marketing initiatives in the face of increased competition in the
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