Startbucks Case

Case: Starbucks-Going Global Fast

Question1: Identify the controllable and uncontrollable element that Starbucks has encountered in entering global markets.

Answer:

 Controllable:

1. Products: Provide beverage (Coffee, Frappuccino, and Tea), food (Sandwiches, Desserts, and Salad), other (CDs, Pre-paid Cards, and Cups), services (free Wi-Fi)

2. Place: Shopping mall, office building, storefront, and website.

3. Price: $3 a cup in America. In Italy the price cheaper.

4. Promotion: spend one percent of revenue on advertising, and rely on mystique and word of mouth.

 Uncontrollable:

1. Economic forces: In Japan, the market is gradually saturate and economic turn down.

2. Competitive forces: There are many rival products and Starbucks-like competitor in Japan

3. Political/legal forces: The arcane regulations and generous labor benefits.

4. Culture forces: the young people interested in new things in Vienna.

Question 2: What are the major source of risk facing the company and discuss potential solution

Answer:

Starbucks found in Seattle from 17 stores to over 16,000 outlets in 44 countries since 15 years ago. Starbucks constantly expand their stores, so the market quickly saturated in U.S. Therefore, Starbucks face the market saturated in the U.S. market, they can expand market to international or global marketing. Another risk is that the global expansion makes less money on overseas stores. After the Generation X, the