Starbucks Corporation: Competing in a Global Market

In: Business and Management

Submitted By mtchsct
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Starbucks Corporation: Competing in a Global Market
There are multiple factors that Starbucks should consider in deciding where and when to expand into international markets. In determining where to expand it’s important that Starbuck’s considers the local demographics of each region they may expand into. When determining which countries or regions to expand into, they need to consider where consumer’s tastes and preferences align with their product offerings. In Starbucks case, they offer a product that is used by people worldwide but they sell it at a price premium so it’s important that they choose locations in more affluent areas. While their goal seems to be to eventually expand into markets throughout the entire world, including emerging markets, their focus at this point should mainly be on more established countries where the demand will be much greater due to the larger percentage of consumers who can afford their product. They should also look to densely populated areas where they can be sure to see large amounts of traffic on a daily basis. They must also consider differences in host government demands when determining where to expand. Some markets may be more difficult to enter due to local rules and regulations that may not be in place in other countries.
Since Starbucks has chosen to operate with local partners in their international markets it’s important that they choose locations where they feel comfortable and confident in the abilities of their partners. They may find a market that seems very profitable, but if they can’t find a local partner to work with they may need to hold off on entering that market until they find someone that can ensure their success. They must also consider the local economic and political conditions when entering a new international market. If the economy is depressed and people aren’t spending their…...

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