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Case Study Starbucks Takes Coffee Culture Around the World Frommodest beginnings nearly 50 years ago in Seattles Pike StreetMarket, Starbucks Corporation has become a global

Case Study Starbucks Takes Coffee Culture Around the World Frommodest beginnings nearly 50 years ago in Seattle’s Pike StreetMarket, Starbucks Corporation has become a global marketingphenomenon. Starbucks locations serve hot and cold drinks,whole-bean coffee, microground instant coffee known as VIA,espresso, caffe latte, full- and loose-leaf teas including Teavanatea products, Evolution Fresh juices, Frappuccino beverages, LaBoulange pastries, and snacks including items such as chips andcrackers; some offerings (including their annual fall launch of thePumpkin Spice Latte) are seasonal or specific to the locality ofthe store. The first Starbucks location to open outside of NorthAmerica opened in Tokyo, Japan, in July 1996. On December 4, 1997,the Philippines became the third market to open outside of NorthAmerica. Starbucks entered the U.K. market in 1998 with the US$83million acquisition of the then 56-outlet, UK-based Seattle CoffeeCompany, re-branding all those stores as Starbucks. In 1999,Australia's first Starbucks store opened in July 2000 in Sydney.After a massive downturn in 2008, the remaining AustralianStarbucks stores were purchased in 2014, with the company planninga more restrained expansion. In September 2002, Starbucks openedits first store in Latin America, in Mexico City. Currently, thereare more than 500 locations in Mexico. In October 2002, Starbucksestablished a coffee trading company in Lausanne, Switzerland tohandle purchases of green coffee. All other coffee-related businesscontinued to be managed from Seattle. In April 2003, Starbuckscompleted the purchase of Seattle's Best Coffee and TorrefazioneItalia from AFC Enterprises for $72m. The deal only gained 150stores for Starbucks, but according to the SeattlePost-Intelligencer, the wholesale business was more significant. InSeptember 2006, rival Diedrich Coffee announced that it would sellmost of its company-owned retail stores to Starbucks, escalating aregional coffee war. This sale included the company-owned locationsof the Oregon-based Coffee People chain. Starbucks converted theDiedrich Coffee and Coffee People locations to Starbucks, althoughthe Portland International Airport Coffee People locations wereexcluded from the sale. In August 2003, Starbucks opened its firststore in South America in Lima, Peru. The company opened its firststore in Russia in 2007, ten years after first registering atrademark there. In 2008, Starbucks purchased the manufacturer ofthe Clover Brewing System. They began testing the "fresh-pressed"coffee system at several Starbucks locations in Seattle,California, New York, and Boston. In May 2008, a loyalty programwas introduced for registered users of the Starbucks Card(previously simply a gift card) offering perks such as free Wi-FiInternet access, no charge for soy milk and flavored syrups, andfree refills on brewed drip coffee, iced coffee, or tea. In 2009,Starbucks began beta testing its mobile app for the Starbucks card,a stored value system in which consumers access pre-paid funds topurchase products at Starbucks. Starbucks released its completemobile platform on January 11, 2011. On November 14, 2012,Starbucks announced the purchase of Teavana for US$620 million incash; the deal was formally closed on December 31, 2012. OnFebruary 1, 2013, Starbucks opened its first store in Ho Chi MinhCity, Vietnam, and this was followed by an announcement in lateAugust 2013 that the retailer would be opening its inaugural storein Colombia. The Colombian announcement was delivered at a pressconference in Bogota, where the company's CEO explained, "Starbuckshas always admired and respected Colombia's distinguished coffeetradition." In May 2014, the Starbucks operations in South Korealaunched a mobile ordering system named Siren Order, which isaccessible through a local version of Starbucks smartphoneapplication. In the U.S. Starbucks later launched a similar systemnamed Mobile Order & Pay, which launched in Portland, Oregon inDecember 2015. The service has since expanded nationwide, and inlate March 2018, the company opened the system to all customers. InAugust 2014, Starbucks opened their first store in Williamsburg,Brooklyn, one of 30 Starbucks stores to offer beer and wine. InSeptember 2014, it was revealed that Starbucks would acquire theremaining 60.5 percent stake in Starbuck Coffee Japan that it doesnot already own, at a price of $913.5 million. In August 2015,Starbucks announced its intention to enter Cambodia, its 16thmarket in the China/Asia Pacific region. The first location wasscheduled to open in the capital city of Phnom Penh by the end of2015. In February 2016, Starbucks announced that it would enterItaly, its 24th market in Europe, with the first location to openin Milan by 2018. On July 27, 2017, Starbucks acquired theremaining 50% stake in its Chinese venture from long-term jointventure partners Uni-President Enterprises Corporation (UPEC) andPresident Chain Store Corporation (PCSC). Many stores sellpre-packaged food items, pastries, hot and cold sandwiches, anddrinkware including mugs and tumblers. There are also severalselect "Starbucks Evenings" locations which offer beer, wine, andappetizers. Starbucks-brand coffee, ice cream, and bottled coldcoffee drinks are also sold at grocery stores in the United Statesand other countries. In 2010, the company began its StarbucksReserve program for single-origin coffees and high-end coffeeshops. It planned to open 1,000 Reserve coffee shops by the end of2017. Starbucks operates six roasteries with tasting rooms and 43coffee bars as part of the program. The latest roastery locationopened on Chicago's Magnificent Mile in November 2019, and is theworld's largest Starbucks. As of early 2020, Starbucks is theworld’s leading specialty coffee retailer, with 2020 sales of $23.5billion and almost 350,000 employees. Coffee remains Starbucks corebusiness; to reach the ambitious goal of 40,000 shops worldwide,Starbucks is expanding aggressively in key countries. Starbucks hasalso been successful in other European countries, including theUnited Kingdom and Ireland. Greater China—including the mainland,Hong Kong, and Taiwan—represents another strategic growth marketfor Starbucks.

Answer the Following Questions Briefly with Reference to Casestudy and other source (if other source specify). Please answer itproperly. " Don't Copy Paste from other sources"

  1. Starbucks has used a variety of market entry and expansionstrategies to create an empire of more than 30,000 coffee calls in75 countries. What type of strategies have they used? Give anexample from the case for each one you name and explain why it hasor has not been successful.

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