Welcome to our

presentation

STARBUCKS
GOING GLOBAL FAST
Class Roll Name ID
20 Faria Mirza 111 121 349

18 Arefin Rahman 111 121 323

19 Tanvir Hossain 111 121 333

12 Sumaiya 111 121 017

Sharmin
23 Atosi hasan Arbi 111 121 401
 Overview
• Starbucks Corporation (1971) is an
American coffee company and coffeehouse
chain

• Within 15 years Starbucks has created

16,000 outlets globally from only 17 coffee
shops

• Starbucks has over 10,000 coffee shops in

U.S. alone
CONTROLLABLE
ELEMENTS
PRODUCTS
• Starbucks customize products according to the
customers taste and preferences
• They have changed their “made to order-cafe”
into cans, bottles or coffee machines

PRICE
• Starbucks can change their pricing policy for
different countries
• In japan price is not a factor when it comes to
quality coffee
CHANNEL OF DISTRIBUTION
• Global Operation
• In Vienna concept of Starbucks stores are
more hip to them, but not so in America

PROMOTIONAL ACTIVITIES
• Word of mouth
• Spends around $30 million for advertising
purpose which is only around 1 percent of
their revenue
RESEARCH

• Innovate new ideas and bring new products

or services.

• Research is important - “They either can’t

afford to buy coffee at Starbucks, or the only
peers they see are those working behind the
counter.”

FIRM CHARACTERISTICS
• Aggressive, ruthless, predatory and
innovative.
 Uncontrollable
Elements
CULTURAL FORCES
• Asians like less sweeten and U.S. like sweetened
coffee
• According to Philippe Bloch “The French seem to
be ready for Starbucks’ sweeter taste”

POLITICAL ISSUES
• their internal political conflicts between Israel
and Palestine
• Schultz had to fly to Israel to discuss the Middle
East crisis
LEVEL OF TECHNOLOGY
• Preorder and prepay- may not work in
developing and under developed countries
• Wi-Fi may not be feasible idea

ECONOMIC CLIMATE
• Economy of foreign market can be very
different
• In northern Italy coffee price – 67 cents, in
southern Italy it is only 55 cents whereas in
America the price is $1.50.
• “Starbucks will come to Italy, it will have a
lot to prove when it does” - Schultz
LEGAL ISSUES
• Governments of foreign countries may change
their fiscal and monetary policies affecting the
operations of Starbucks.

FOREIGN COMPETITION
• A famous local coffee brand named Mt. Rainier
has the similar circular green logo.
• Locals prefer their own coffee over Starbucks
• Imitators and copiers
• Premium brand or local market share
 MAJOR RISK OF
STARBUCKS
• Global dominance lead to street protest.

• Global recession make the customers price

sensitive.

• Employee burnout.

• Unwilling to pay high wages to employees

and manager.

• Not paying overtime payment.

 MAJOR RISK OF
STARBUCKS cont..
• Employees and manager suit against
Starbucks.

• Starbuck was saturated from U.S. market.

• High price of commodities leads consumer

spend less.

• Expansion and cannibalization risk.

 SOLUTIONS
• Increased advertisement cost to improve public image.
• Focus on product differentiation.
• Study on culture before entering new market.
• Reposition product strategy to maintain sales in different
situation.
• Make employee satisfy that leads improve product quality.
• Expansion on BRICS
 CORPORATE STRATEGY
• Fail to match between corporate strategies
and customer’s expectations.

• Still Starbucks have no store in eight state

in the U.S.

• Increasing the outlet will never impact on

sales growth.

• Focus on customer nature and demand.

 CORPORATE STRATEGY
cOntd…
• Differential pricing strategy for younger
generation.

• Increase the brand popularity outside

the U.S. by increasing the percentage of
advertisement.

• Predatory real-estate strategy.

 CORPORATE
STRATEGY cOntd…
• They fail to maintain employee
workload that leads dissatisfaction and
bad quality coffee.

• They should focus on consumer

oriented rather product concept.

• Focus on customer nature and demand.

  
How might Starbucks improve profitability in Japan?

Improve profitability in Japan Starbucks have to consider the

following things:

• Introduce Canned coffee

• Healthy options of food
• Add other types of fast foods
• Customers bonus programs, membership cards
• Online service including home delivery
How might Starbucks improve
profitability in Japan? CoNT…

 Various cultural campaign or entertainment

 Investment in extensive Research and

development

 Reduce the prices of special coffees

 Supply Wi-Fi system

 Offer new beverages

How might Starbucks
improve
profitability in Japan?
So we think
CONTD... Starbucks must be
successful in Japan because now a days
the young generation are more likely to
drink coffee rather than tea also.