STARBUCKS

Coffee Shop Industry

Starbucks

Introduction

The companies in today's competitive world are facing various challenges related matured markets, cutthroat competition and rivalry, consumers ever increasing needs and to sustain in a country while combating the macro economic variables such as political, legal, social and technological. These conditions have thus made essential for the companies to expand in the international frontiers by exploiting the market conditions prevailing there. International marketing strategy is defined as the opportunity of arranging company's products, technology, human resources, management and other resources to enter into a foreign country (Root 1994). International market strategies help companies analyze and exploit the market opportunities by setting their goals, resources and policies accordingly to channelize their international activities toward a sustainable international expansion.

The main objective of this research report is to select a country and expanding the market of company and product in that country. The findings of this research report will enable to examine how an organization can expand its business operation in international market with the aid of its effective and efficient strategies in developed country like United Kingdom. The basic reason behind this research is to perform the analysis of an organization and to determine in how it can implement one of its outlets in United Kingdom. The selected organization for performing this analysis is Starbucks.

Overview of the Industry

Starbucks is the largest coffee house in the coffee retail business all over the globe. Starbucks owns around 9000 coffee shops in more than 50 countries. The figure shows the global presence of the Starbucks in almost all continents of the globe. The company's headquarters are in Seattle, Washington, U.S. The marketing expansion strategies of Starbucks in various countries include buying the competitors' shares and franchises, intentionally purchasing the companies operating at loss such as purchasing the Seattle Company in year 1998 facing financial hurdles and clustering and expanding several locations in the small geographical areas.

The philosophy of the company is to maintain the highest standard of quality for their customers and highest standard of safety for their employees to achieve the success. The company is established in year 1971 however its official operations started in year 1990 in United States.

Starbucks initially entered the United Kingdom in year 1998 by acquiring the Seattle Coffee Company which is a chain of more than 38 retail stores on the U.K coffee serving market. Seattle Coffee is now wholly owned subsidiary of the Starbucks in UK. The products of the Seattle Company are generally cheaper than Starbucks and is more focused towards the niche markets such as working class compared to the mass market of the Starbucks.

Starbucks can also focus on the niche markets and those existing customers served by its subsidiary companies. Starbucks can also offer variety of acquisition, mergers and joint venture options to the existing companies for better business opportunity and market expansion.

Macro Environment Analysis of the Industry

PEST Analysis

Political Environment

Starbucks is functioning well and providing services with its stores all around the ...