International Strategies of Starbucks And Marks & Spencer

INTRODUCTION3

BUSINESS STRATEGIES FOR INTERNATIONAL COMPETITION4

COMPARISON OF THE INTERNATIONAL STRATEGIES USED BY MARKS & SPENCER AND STARBUCKS8

Starbucks8

Marks & Spenser11

CONCLUSION12

BIBLIOGRAPHY14

International Strategies Of Starbucks And Marks & Spencer

INTRODUCTION

The researcher examines a detailed synopsis of the specialty coffee industry and the role that Starbucks and Marks & Spencer plays in it. Both companies are in a growth market, and it has a good relative overall position. The researcher will examine the business structure of Starbucks and Marks & Spencer the future implications of its current business strategies. By examining the strategic imperatives such as how to expand abroad and understanding the international context, the researcher will determine strong and weak business strategies of the company. Starbucks has overcome organizational and managerial implications that will serve as a strong model for international businesses. The researcher will then give strategy and implementation recommendations on how Starbucks can grow as an international business. Where as Marks & Spencer (M&S), has suffered a series of misfortunes, both at home (Britain) and abroad. Company sales have dropped, stock prices and market capitalization were substantially reduced, and overseas profits have declined. In January 1999, following a terrible earning announcement, the company announced that it had formed a marketing department, forcing the company to become more proactive and market driven. To head the department, M&S promoted James Benfield, a 17 year veteran of the retailing giant who worked as a former head of menswear, home furnishings, and direct mail.

BUSINESS STRATEGIES FOR INTERNATIONAL COMPETITION

Starbucks is currently one of the top contenders in the coffee industry. It is aware of the stiff competition and are prepared to combat it however possible. In order to better determine Starbucks' situation in the specialty coffee industry, it is important to look qualitatively and quantitatively at its current strategy. An analysis of the company's strengths, weaknesses, opportunities, and threats, SWAT analysis, and a strategic issues analysis will breakdown its strategy and provide positive and negative feedback on the company as a whole.

Starbucks has done many things to help its company grow and expand into the transnational business that it is today. Its high quality differentiation strategy allows it to focus on pleasing the customer in every way possible. Its introduction of wireless internet and the Starbucks Digital Network allows it to provide a better experience for its customers and increase its sales compared to the company's previous performance. If people stay at Starbucks for longer periods of time, they are more inclined to buy more beverages or food and music from the online stores that Starbucks is partnering with in its Digital Network. Starbucks is going to be able to sell its music, as well as other forms of media through its introduction of wireless internet. In January, an announcement was made that sales increased by 4% after months of decline after the introduction of the wireless internet. Wireless internet is a major strategic asset to Starbucks, and it will continue to help them in the future countries that they ...