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Starbucks global expansion strategy
Starbucks global expansion strategy
Starbucks global expansion strategy
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1) Introduction
• Company Background
Since opening its first single store in Pike Place Market, Seattle, Washington (USA) in 1971, Starbucks has established itself as the world’s leading retailer, roaster and brand of specialty coffee. Today, they are privileged to connect with millions of customer everyday with nearly 18,000 outlets in 60 countries, including Indonesia. Starbucks not only selling coffees, they also sells other beverages, such as hot chocolate, green tea, pastries, cookies, and items like mugs and tumblers.
• Starbucks Mission Statement
“To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.”
The principles of Starbucks in order to accomplish their mission:
• Our Coffee – It has always been, and will always be, about quality.
• Our Partners – We always treat each other with respect and dignity. And we hold each other to that standard.
• Our Customers – When we are fully engaged, we connect with, laugh with, and uplift the lives of our customers – even if just for a few moments.
• Our Stores – It’s about enjoyment at the speed ...
In 1964, a National Hockey League legend by the name of Tim Horton opened his first coffee shop in Hamilton, Ontario, serving only coffee and donuts for 10 cents each. Throughout the years Tim Hortons’ has grown into a respectful company with an eagerness to achieve high levels of sustainability and creating better lives for coffee farmers, coffee communities, and economically disadvantaged children in North and South America. “The chains’ focus on top quality, always fresh product, value, great service and community leadership has allowed it to grow into the largest quick service restaurant chain in Canada specializing in always fresh coffee, baked goods, and home-style lunches” (Timhortons.com). Tim Hortons has expanding their
Starbucks Corporation is one of the world's largest coffee roaster, marketer, and retailer of coffee. In 1971, three entrepreneurs, Jordan Bowker, Zev Siegel, and Jerry Baldwin opened first Starbucks store in Seattle, WA. In 1982, Howard Schultz joined Starbucks as a marketing director. He came up with the idea to make Starbucks a coffee house chain but Starbucks founders rejected the idea and he left the company in 1985. Later, Schultz started his own coffee bar named “Il Giornale”. In a couple of years, he was able to buy Starbucks Corp. from its original owners. He renamed his coffee bars "Il Giornale" as Starbucks. In 1987, Starbucks opened its first store outside the Seattle in Vancouver and Chicago. In 1996, Starbucks opened its first international store in Tokyo, Japan. [1,2]
In 1982 the president and CEO Howard Schultz, joined the company. He had just returned from a trip to Italy in 1983, and invasion a new way to serve coffee in the United States. He wanted to bring the way of Italian coffeehouse here. Nevertheless, this was not until 1987 where he would come in with several local investors to purchase Starbucks and rebrand. Opening their doors here in Chicago. In 1991, Starbucks took off and was the first companies to offer full and part time employment with benefits. They also were able to take the lead in the coffee world by offering Frappuccino’s. Their success landed a partnership in 1995 Pepsi-Cola. This help them market to consumers a ready-to-drink Frappuccino that was available for purchased through local grocery stores or convenient stores. It was also in 1996 that Starbucks opened its first store outside of North America, which expanded a branch in Japan. In 1998, this offer Starbuck to acquired Tazo Tea Company. This lead to collaboration with Conservation International in 1999, to promote environmentally responsible methods for growing coffee. Starbucks has continued to grow over the years, launching its VIA™ Ready Brew coffee in 2009 (Starbucks Timeline, 2010). They have continued to work aggressively to serve the public as of today Starbucks has more than 15,000 stores in 50 countries, and have taken their name to be known as the world’s premier
Large companies are always in need of new innovative ideas to keep them afloat. Though they struggle with the concept of change and new, these things bring new life to even a thriving company such as Starbucks. If a company does not accept change or try new ideas it may get too comfortable miss out on trends and changes in consumerism thereby hurting profits. To keep this from happening, companies engage in intrapreneurship, a a term made popular by Howard Edward Haller and Steve Jobs in the mid 1980 's (Deeb, 2015). Entrepreneurship inside a large organization is the idea behind intrapreneurship and with support from the executives it can take the company into new markets.
Over the past few decades, Starbucks has become a household name. Headquartered in Seattle, Washington, Starbucks is one of most lucrative coffee chains in the world. As of 2015, the company has chains in 50 countries with more than 22,500 stores in operation (Starbucks Corporation, 2017). The 70 stores located in Australia are focal point stores, which focus/tailor to improving the marketing strategy, customer service, and testing of new products to differentiate the company from the competition. Coffee is their primary business, so obtaining high-quality coffee beans from the nations that produce this product is important. Not only does the company sell hot coffee beverages, but they also offer a variety of cold drinks. The menu consists
Whole Food’s major competition is Trader Joe’s, Central Market/HEB, and Sprouts. Each of these stores has branched into the specialty food industry, at least in some aspect of their company. The main competitor is Sprouts, followed by Trader Joe’s (CITE investopedia).
Including Desserts According to USA Today, 78% of consumers would like to get dessert just for own reward or treats; also, 60% order desserts because they feel happy.(33) However, consumers barely find dessert options in meal kit delivery companies because it is hard to distribute small amount of ingredients that use to make any kinds of desserts such as cookies, cakes and muffins. However, there are dessert delivery companies who only sell desserts. For example, red velvet cupcakes are packed similar to any other meal kits.
Internal resource is the first consideration that can lead to sustainable competitive advantage and Resource –Based View (RBV) is a theory that usefully helps a firm focus on internal resources (Kraaijenbrink, Spender & Aard, 2010). According to RBV (Valuable, Rare, hard to imitate and non-substitutable), companies have different tangible and intangible resources, these resources can be transformed into unique ability, this special ability cannot flow between firms and rival firms and difficult to reproduce. These unique resources and abilities are the source of enterprise sustainable competitive advantage. In this part, Starbucks and Apple are worth to be analyzed by RBV.
According to collected data (Starbucks company profile 2014) has become the largest coffeehouse company in the world, with more than 20,000 stores in 65 countries and territories, including 12,802 in the United States, 1,930 in China, 1,409 in Canada, 1,121 in Japan and 825 in the United Kingdom.
Starbucks is the world’s largest specialty coffee retailer, Starbucks has more than 16,000 retail outlets in more than 35 countries. Starbucks owns more than 8,500 of its outlets, while licensees and franchisees operate more than 6,500 units worldwide, primarily in shopping centers and airports. The outlets offer coffee drinks and food items such as pastries and confections, as well as roasted beans, coffee accessories, teas and a line of compact discs. The company also owns the Seattle's Best Coffee and Torrefazione Italia coffee brands. In addition, Starbucks markets its coffee through grocery stores and licenses its brand for other food and beverage products. Starbucks Corporation was founded in 1985 and is based in Seattle, Washington. (Bramhall)
This café provide lot of food varieties and cold drinks and coffee for new daily customer on cheap rate.
Starbucks is a worldwide company, known for is delicious brews of coffee and seasonal varieties of tasty drinks for any occasion. Starbucks opened with two main goals, sharing great coffee with friends and to help make the world a little better. It originated in the historic Pike Place Market of Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker. The creation of Starbucks’ name came from the seafaring tradition of early coffee traders and the romance evoked from Moby Dick. At the time, this individual shop specialized in the towering quality of coffee over competitors and other brewing services enabling its growth to becoming the largest coffee chain in Washington with numerous locations. In the early 1980s, the current CEO Schultz saw an opportunity for growth in the niche market. After a trip to Italy he brought back the idea of a café style environment of leisure and social meetings to the United States we now see in Starbucks locations today. Schultz ultimately left Starbucks to open his own coffee shop, Il Giornale which turned out to be a tremendous success. Fast forward a year later, Schultz got wind that Starbucks was going to sell all their components of Starbucks including their stores and factories, he immediately acquired the funds to buy Starbucks and linked both operations. Within five years he was able to open more than 125 stores starting in New England, Boston, Chicago, and gradually entered California. He wanted Starbucks to be a franchise system based on the mission of telling the truth and emphasize the quality,
Starbucks, a coffee bean sales company did not have much of a marketing plan in place at its inception. Based in Seattle Washington the company began to sell coffee beans to espresso bars and upscale restaurants back in 1982. It took 11 years to progress to that level of production, they originally were a local store vendor at Pike Place Market. The director of marketing brought back the espresso bar idea from his travels in Milan. (Company Profile, 2015) The Pacific Northwest was filled with working class men and women that were drawn to the coffeehouse tradition brought in from Italy.
with each other, working in agreement for the good of the person as a whole. In
Starbucks is an international coffee house and it was created in 1971 when they opened the first store in Seattle, Newcastle. Currently, they own 21,000 stores in 65 different countries of the world, and their passion for the great coffee, excellent service and community interaction exceeds cultures and languages (Starbucks, 2014). This company is the number 1 brand coffeehouse chain in the world due to the best roaster, marketer and seller of speciality coffee. Its main slogan: “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time” (Jurevicius, 2013).